FDJ shares up 16.5% following company floatation
French national lottery operator enjoys spike in share price on first days trading
Shares in French lottery and sports betting operator Francaise des Jeux (FDJ) rose 16.5% following its first day of trading as a publicly listed company on the Euronext stock exchange.
At close of business yesterday, the company’s shares were trading at €22.70, well above the offer price of €19.50 per share for retail investors, and the €19.90 a share for institutional investors.
A total of 81,141,631 shares were included in the IPO, representing 42.5% of FDJ’s share capital, or approximately €1.6bn.
Source: Euronext stock exchange
Allocations of these shares were sold firstly to French investors and then as part of a global share placement. Forty-five percent of total IPO shares (36,520,134) were included within the French public offering, representing €712.1m.
The remaining 55% of shares in the IPO (44,621,497) were included within the global placement, valued at €888m. A total of 3,176,327 shares were allotted to employees of FDJ. According to recent figures released during the IPO process, FDJ’s total market capitalisation is €3.7bn.
We are extremely proud to welcome @FDJ, the largest player in the French gaming industry, on our markets. FDJ's #IPO was a resounding success among retail and institutional investors, and made it possible for French individuals to own around 20% of FDJ's capital pic.twitter.com/ShoJaq58Ew
— Euronext (@euronext) November 21, 2019
Stéphane Pallez, chairwoman and CEO of FDJ, hailed the IPO as a “tremendous success” with both French investors and international institutional investors.
“These results confirm trust in the Group’s future. Thanks to the commitment of its 2,500 employees and to benefit all its shareholders, the Group will pursue a balanced expansion strategy, combining financial performance, responsible gaming and corporate social responsibility,” Pallez added.
Following the share sale, the French government’s remaining stake in FDJ has been reduced to 21.9%.
However, the government will maintain a significant interest in FDJ under recent proposals being evaluated by the French parliament. These include the appointment of an independent commissioner to FDJ’s board and a veto on any share dealings in the business which exceed 10%.