SmartStream set on £300m LSE flotation

SmartStream, a banking software company, has unveiled a plan to raise about £100m by listing its shares on the London Stock Exchange, one of the largest software flotations since the tech boom.

SmartStream is one of the few beneficiaries of the market malaise as its software automates the back office functions of large investment banks, matching trades and correcting errors during financial transactions.

Ken Archer, chief executive, said the recent surge in trading on the back of the credit crisis had highlighted the need for better systems to process transactions with many large banks struggling to cope with the increased volumes in August, leading to a backlog in confirmations of credit derivative trades. With the number of shares traded across global exchanges increasing by 29 per cent to 24 trillion in 2006, many legacy transaction systems are struggling to support higher trading volumes. Andy Balchin, finance director, said: "We're looking forward to going out on the road and showing the merits of SmartStream's products to the investment community."

The listing is the largest software float on the London markets since 2001, excluding online gaming companies and will value the company at up to £300m. The company is owned by TA Associates, a Canadian private equity company.