French government hails €1bn FDJ IPO as “immense success”

The IPO of state lottery operator Francais Des Jeux (FDJ) has raised €1bn during the ten days since the offering began on 7 November, the French government has said.

In an interview with French TV outlet BFM, French finance minister Bruno Le Maire hailed the IPO as an “immense success for the people”.

Subscription figures for institutional investors have not been confirmed, however reports claim the full allocation of shares has been taken.

Under the terms of the IPO the French government reserved a third of the 52% shares in the business for retail investors.

Retail investors will receive one free share for every ten shares purchased and will receive a 2% discount on the offer price if shares are retained for an eighteen-month period.

Retail investors have until 19 November to submit share subscriptions, while institutional investors will have until 20 November to make their subscriptions. Share prices for both groups will be officially fixed later this week.

FDJ will then be floated on the Euronext Paris stock exchange on 21 November. Funds from the IPO will be funnelled back into the French economy.

Le Maire confirmed that retail investors would be given priority over their institutional counterparts if the shares were over-subscribed.

According to provisional figures, shares have an indicative price of between €16.50-€19.90, meaning the FDJ business could be worth an estimated €3.8bn.

At present, the French government is currently debating whether to give FDJ formal exclusivity on lottery-based gaming, something which it currently does not have under French law.

Part of this exclusivity will allow the French government to block decisions which it deems to be inconsistent with company objectives.

In addition, the French government will have final approval on decisions by any shareholder to increase their shareholding beyond 10%.