The Sweden-founded software group, which specialises in enterprise resource planning (ERP), field service management and industrial asset management systems, is reportedly targeting a listing within the next two years. The company is currently valued at approximately €15 billion and is considered one of Europe’s most significant privately held software businesses.

IPO Considered “An Inevitability”

IFS Chief Executive Mark Moffat recently described a public listing as “an inevitability,” while confirming that the company is evaluating several possible listing venues, including London, New York and major European exchanges. The company had initially considered an earlier flotation, but market volatility linked to geopolitical tensions and broader technology-sector weakness has caused management to adopt a more cautious timeline.

“If we keep scaling properly and building out our capabilities, we’ll be ready to capitalise on opportunities when market conditions improve,” Moffat stated in recent comments discussing the company’s IPO ambitions.

Industrial AI Driving Growth

Unlike many software groups focused on consumer-facing generative AI products, IFS has positioned itself heavily around industrial applications of artificial intelligence. The company’s software is widely used across sectors including aerospace, energy, defence, manufacturing and telecommunications, helping businesses optimise maintenance schedules, supply chains, field service operations and predictive asset management.

IFS executives believe this industrial focus may help the company avoid some of the investor concerns currently weighing on broader software valuations. Global technology stocks have experienced increased volatility throughout 2026 amid growing questions surrounding AI monetisation, competition and long-term profitability across the software sector.

Strong Financial Momentum

The company has continued posting strong growth figures heading into its expected listing window. Annual recurring revenue reportedly rose 25% year-on-year during the first quarter of 2026, reaching approximately €1.7 billion. EBITDA margins have also remained strong at around 34%, reflecting the company’s expanding subscription-based revenue model and operational efficiency.

Industry analysts view these figures as critical in supporting a future premium valuation, particularly as investors increasingly favour software businesses with strong recurring revenues and defensible enterprise market positions.

Private Equity Backing

IFS was taken private in 2015 by investment firm EQT and has since undergone significant international expansion. The shareholder group now includes several major institutional investors, including the Abu Dhabi Investment Authority (ADIA), TA Associates, the Canada Pension Plan Investment Board and Generation Investment Management.

The involvement of large institutional investors has fuelled expectations that the eventual listing could become one of Europe’s largest software IPOs in recent years, depending on market conditions at the time of flotation.

London Competing for the Listing

The prospect of IFS choosing London for its IPO would be viewed as a major boost for UK capital markets, which have faced mounting criticism over their declining ability to attract large technology listings. Several high-profile companies have either delayed IPOs or opted for New York listings in search of deeper liquidity and higher valuations.

Despite those concerns, Moffat suggested London remains under serious consideration, citing the city’s international investor base and the UK government’s ongoing efforts to revitalise public markets.

“When the time comes, we will consider all options very seriously,” he stated.

Market Conditions Remain Key

Although IFS appears financially well-positioned for a listing, the final timing will likely depend heavily on broader equity market conditions. Rising geopolitical tensions, persistent inflation concerns and continued uncertainty surrounding AI-related software valuations have all contributed to a more cautious IPO environment during 2026.

For now, investors and analysts are closely watching whether IFS can continue delivering strong growth while distinguishing itself from other software firms facing mounting pressure from the rapidly evolving artificial intelligence landscape.