SOFTWARE firm Alfa Financial is to embark on one of the biggest stock market flotations this year, valuing the tech company at nearly £1 billion.

The company has priced shares at 325p for an oversubscribed book, handing the firm a market capitalisation of £975 million.

It expects to raise £254m on admission by offering 78 million shares, the firm said in a statement.

The move comes during a slowdown in UK initial public offerings (IPO), with some companies putting flotations on hold amid concerns over Brexit.

Chief executive Andrew Denton said the asset finance market offered "many growth opportunities" and the firm was well placed to "take advantage accordingly".

He said: "We have an enviable market position based on the strength of our market leading technology, our long-term customer relationships and our talented, hard-working teams around the world.

"With a track record of strong returns, the successful IPO of Alfa will assist us in continuing the momentum of the business in the years ahead."

Alfa has developed a "mission-critical" software platform for the asset finance market.

Its customers include Bank of America, Barclays and Mercedes-Benz.

The global asset finance market is said to be worth around three billion US dollars, according to an estimate by professional services firm PwC.

The flotation will see management take 74 per cent and investors acquire a 26 per cent stake.

Executive chairman Andrew Page added: "This IPO represents a major landmark in the development of Alfa.

"I am delighted to welcome our new shareholders to the register.

"We have been thrilled with the level of support and interest we have had through this process from a wide range of bluechip investors, and are looking forward to delivering further growth and success as a listed business."