Shares in global financial software giant Alfa have leapt following its listing on the London Stock Exchange.
Alfa entered the market for conditional dealing on Friday 26 May and its shares had risen from 325 pence to more than 420 pence per share by Monday June 5, according to latest figures, pushing the market capitalisation of Alfa to more than £1 billion.
The company is the force behind Alfa Systems, a purpose-built software platform that is used by asset finance companies throughout the automotive and equipment finance market across the entire asset finance lifecycle.
This covers from proposal to end of lease, across a range of asset types and financing structures.
A number of major asset finance companies across the globe are customers, including Bank of America, Barclays, Mercedes-Benz and Nordea.
Speaking after the shares made their debut, CEO Andrew Denton said: “Joining the London Stock Exchange is a positive move for everyone at Alfa and anyone associated with us.
“We have built a business that is predicated not just on industry-leading technology, but also through a thorough understanding of our markets and deep relationships with blue-chip organisations across the globe. Our listing raises our profile, provides us with great opportunities for growth, and will help secure our corporate future.
“We have chosen this path because it’s the right direction for the business, and reflects our confidence in Alfa’s long-term prospects. The management remain majority shareholders, and we look forward to providing continued success for our valued clients.”
Alfa directors believe the market is underserved due to a lack of purpose-built modern solutions, with many asset finance companies currently relying on legacy systems or non-specialist ERP systems.
It has already enjoyed strong growth in the past few years on the back of a thriving asset finance market.
For the year ended December 31, 2016, revenues were up more than 30% to £73.3 million with earnings before interest and tax reaching £32.8 million, a year-on-year rise of more than 45%.
Denton added: “Asset finance is one of the powerhouses of the sharing economy. It is a massive and highly diverse market.
“I would argue that we are the leading player in the world, but we are just scratching the surface with around 2% of the market.
“Taking the company public is creating a platform for growth. We have an amazing team of non-executive directors with an incredible track record.”
Denton said that all great companies have causes and Alfa was focused on two key areas – people and product.
He added: “As a talent-based business this gives us new ways of retaining and attracting people and incentivising our employees, which is very important.
“We have nearly 300 amazing people worldwide who make this company operate, with incredible diversity of background and thought. That is very important.
“So many software projects do not deliver. We deliver, we add the business benefit, we get projects over the line and that’s important.
“Also, we have a fabulous piece of software and again we are only scratching the surface with what it can do.”
With more than 40 clients in 18 countries, Alfa has offices all over Europe, Asia-Pacific and the United States.