Shares in the film and TV production company behind the Paddington movies launched on the London stock exchange today in a rare boost for the City’s moribund IPO market.
French owned CANAL+ makes it debut in London after being spun out by its owner, the media conglomerate Vivendi, which is breaking itself up into three main separate operations: CANAL+; communications and marketing group Havas; and publishing division Louis Hachette Group.
CANAL+ will be London’s first and only £1 billion plus flotation in 2024. But the company, whose portfolio includes the Paddington production firm Studiocanal, is not expected to meet the eligibility criteria for the FTSE 100 index. The 1 billion shares in issue opened at 259p valuing the company at around £2.6 billion.
The flotation comes as latest figures showed the London stock exchange is on course for its worst year for departures since the financial crisis with 88 companies delisting or transferring their primary listing elsewhere and only 18 companies taking their place.
Rachel Reeves, who met the boss of CANAL:+ Maxime Saada at 11 Downing Street on Friday said: “Economic growth is my number one mission - and attracting more investment to the UK is key. I’m delighted that CANAL+, a leading international media company, has chosen the UK. Their decision is a vote of confidence in the UK’s capital markets, the stability we are delivering and our plan for change.”
CANAL+ started its life as a French subscription-TV channel 40 years ago. It now generates revenues in 195 countries and operates directly in 52 countries across Europe, Africa, Asia, and the United States, with a total of around 9,000 employees worldwide. It has 26,8 million subscribers worldwide, and a global audience of over 400 million monthly active users on its OTT and video streaming platforms.
Havas will list in Amsterdam and Louis Hachette in Paris, spreading the investment across Europe. The plans received overwhelming approval with 97.5% of shareholders voting in favour at a meeting in Paris.
The split was engineered by billionaire Vincent Bolloré, who controls Vivendi with a 29 per cent stake. The break-up was overwhelming approved by Vivendi shareholders last week.
