{"id":43397,"date":"2024-12-16T14:07:38","date_gmt":"2024-12-16T14:07:38","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/canal-debuts-on-london-stock-exchange-can-it-revive-the-ipo-market\/"},"modified":"2024-12-16T14:07:38","modified_gmt":"2024-12-16T14:07:38","slug":"canal-debuts-on-london-stock-exchange-can-it-revive-the-ipo-market","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/canal-debuts-on-london-stock-exchange-can-it-revive-the-ipo-market\/","title":{"rendered":"CANAL+ debuts on London Stock Exchange: can it revive the IPO market?"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Shares of CANAL+, the French-owned film and TV production giant behind the popular Paddington<\/em> movies, debuted on the London Stock Exchange today. <\/p>\n

While shares fell almost 16% after their debut, the listing marks a rare bright spot in an otherwise bleak year for London\u2019s IPO market, with the company valued at approximately \u00a32.6 billion.<\/p>\n

This float is part of Vivendi\u2019s sweeping restructuring, which involves breaking up its operations into three independent entities: CANAL+, communications and marketing firm Havas, and publishing division Louis Hachette Group. <\/p>\n

CANAL+\u2019s London debut is the capital\u2019s only \u00a31 billion-plus flotation in 2024.<\/p>\n

Despite its impressive valuation, CANAL+ is not expected to meet the FTSE 100 eligibility criteria. <\/p>\n

Shares opened at 259p, with 1 billion shares issued. <\/p>\n

Meanwhile, Havas is set to list in Amsterdam and Louis Hachette in Paris, diversifying Vivendi\u2019s investment footprint across Europe.<\/p>\n

Rachel Reeves, who met the boss of CANAL+ Maxime Saada at 11 Downing Street on Friday said: <\/p>\n

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Economic growth is my number one mission – and attracting more investment to the UK is key. I\u2019m delighted that CANAL+, a leading international media company, has chosen the UK. Their decision is a vote of confidence in the UK\u2019s capital markets, the stability we are delivering, and our plan for change.<\/p>\n<\/blockquote>\n

Vivendi\u2019s breakup and the \u2018conglomerate discount\u2019<\/h2>\n

Vivendi\u2019s breakup, backed by 97.5% of shareholders, was orchestrated by billionaire Vincent Bollor\u00e9, who owns a 29% stake in the conglomerate. <\/p>\n

The decision to dismantle Vivendi stems from what the company called a \u201cconglomerate discount,\u201d where its collective operations were undervalued.<\/p>\n

At 10:13 a.m. London time, shares of Canal+ were trading at approximately 243 British pence ($3.07), reflecting a 15.7% decline from their session opening.<\/p>\n

Meanwhile, Vivendi\u2019s Paris-listed shares surged by 33.2% during the same period.<\/p>\n

\u201cVivendi was suffering from a conglomerate discount. So when you looked at the value of Vivendi, it was less than 10 billion euros [$10.52 billion], and the estimate of the sum of the parts was much greater than that. So to unlock that value potential of each of these assets, hence the split,\u201d Maxime Saada, CEO of Canal+, told CNBC\u2019s \u201cSquawk Box Europe\u201d<\/a>.<\/p>\n

CANAL+ follows in the footsteps of Universal Music Group, Vivendi\u2019s 2021 Amsterdam spin-off, which now boasts a market capitalization of \u20ac44.8 billion\u2014five times Vivendi\u2019s current valuation of \u20ac8.8 billion.<\/p>\n

CANAL+ began as a French subscription TV channel 40 years ago and has since grown into a global media powerhouse. <\/p>\n

It now operates in 52 countries, has 26.8 million subscribers, and reaches over 400 million monthly users on its OTT and streaming platforms. <\/p>\n

It also owns Studiocanal, producer of the Paddington<\/em> films, and recently expanded by acquiring South African pay-TV leader Multichoice.<\/p>\n

Can CANAL+’s listing boost the London IPO market?<\/h2>\n

CANAL+\u2019s listing offers a glimmer of hope for London\u2019s IPO market, which is experiencing its worst year since the 2008 financial crisis. <\/p>\n

So far, 88 companies have delisted or moved their primary listings, while only 18 have gone public in 2024.<\/p>\n

Over \u00a3100 billion worth of listed companies have taken steps to exit London\u2019s stock market this year, either through takeover agreements or by choosing to delist.<\/p>\n

The exodus includes major players like Ashtead, an FTSE 100 equipment rental firm, which announced plans to shift its main listing to the US<\/a> for better valuations and deeper liquidity.<\/p>\n

Tom Snowball, head of UK equity capital markets at BNP Paribas and an adviser to Canal+ on the IPO, told\u00a0City AM<\/em><\/a>\u00a0that it would be \u201ca positive for the general narrative and sentiment\u201d after a lackluster year for the capital\u2019s flagship bourse.<\/p>\n

Richard Hunter, head of markets at Interactive Investor, added that the listing \u201crepresents a welcome relief for the London market\u201d, City AM said. <\/p>\n

What to expect of listings in 2025?<\/h2>\n

Market insiders are cautiously optimistic about 2025. <\/p>\n

High-profile potential listings include Shein, the fast-fashion giant, which is eyeing London after shelving US IPO plans due to allegations of forced labor in its supply chain. <\/p>\n

Insurer Canopius and consumer credit firm Newday are also preparing for floats that could be valued at \u00a33 billion and \u00a31.5 billion, respectively.<\/p>\n

\u201cWe would hope 2025 does indeed give a more supportive market backdrop for new listings,\u201d Snowball said.<\/p>\n

\u201cThere has been a recent knock to the confidence of both businesses and consumers, and we need to move beyond this and more generally see a stock market recovery \u2013 especially of the FTSE 250.\u201d<\/p>\n

But Hunter said the listings set for next year \u201cwould represent a trickle rather than a flood\u201d and that \u201cthe general direction of travel has been away from the UK market, and the FTSE 100 in particular more recently\u201d.<\/p>\n

London\u2019s financial ecosystem faces stiff competition from US markets, which continue to attract companies with higher valuations and deeper investor pools.<\/p>\n

Snowball noted, “Listings in the first half of 2025 are likely to remain selective, but we anticipate a stronger pipeline later in the year.”<\/p>\n

The wave of departures from London\u2019s stock market has spurred the government into action, prompting efforts to revamp listing regulations and reform the domestic pensions system to bolster capital markets.<\/p>\n

\u201cThere have been signs that the UK is beginning to position itself as a more attractive investment destination,\u201d Hunter said. \u201cBut given the strength of the opposing tide, it is rather too early to call a full-blown recovery.\u201d<\/p>\n<\/p>\n

The post CANAL+ debuts on London Stock Exchange: can it revive the IPO market?<\/a> appeared first on Invezz<\/a><\/p>\n

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(Originally posted on : Invezz ) Shares of CANAL+, the French-owned film and TV production giant behind the popular Paddington movies, debuted on the London Stock Exchange today. While shares fell almost 16% after their debut, the listing marks a rare bright spot in an otherwise bleak year for London\u2019s IPO market, with the company […]<\/p>\n","protected":false},"author":3947362359,"featured_media":43398,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[39],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43397"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362359"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=43397"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/43397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/43398"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=43397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=43397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=43397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}