UK software firm Sophos is considering a £400m (€589m) London initial public offering later this year to take advantage of investors' growing zeal for IT-sector flotations as tech firms generally carry little debt so are less exposed to the sub-prime problems that have rattled the capital markets

Sophos has hired UBS to explore the flotation, according to UK press reports over the weekend. A Sophos spokesman would not comment on "speculation." UBS declined to comment.