Paris (AFP)
The action race of the French Games is in full swing in the final stretch before the IPO of the gaming operator, with already "more than a billion euros" subscribed by small savers, according to Bruno The mayor.
La Française des Jeux is living its last days as a public company. Thursday, November 21, it will enter the stock market at the end of a subscription period that has aroused a strong appetite of small investors as big investors for the 99 million shares placed on the market.
The state could pocket nearly 2 billion euros thanks to the privatization of the gaming operator, in which its participation will go from 72% to about 20%.
The enthusiasm was quick: from November 8, the day after the opening of the period to reserve shares, the share reserved for institutional investors had been fully subscribed.
As for the general public - which 20 to 40% of titles are reserved - he has already asked for actions for "more than a billion euros," said Sunday the Minister of Economy and Finance Bruno Le Maire. This amount far exceeds the $ 600 million originally targeted for small savers.
"It's a huge popular success (...) It's considerable," said Le Maire on the broadcast of BFM-Le Parisien's BFM Politique. "The French are at the rendezvous, the subscribers are at the rendezvous".
Wednesday, when the threshold of 600 million euros of shares requested by individuals had been crossed, Mr. Mayor had seen "the proof that the bet of the popular shareholding is a winning bet".
"We are starting a virtuous circle on the savings of the French," he said Sunday.
Individuals still have until Tuesday evening to subscribe for shares. Subscriptions below EUR 5,000 will be given priority, and those who have requested more will only see part of their request satisfied, in order to satisfy the maximum number of holders.
As for institutional investors (funds, companies, banks, insurance, etc.), they have until Wednesday noon to subscribe securities.
The first listing on the Paris Stock Exchange on Euronext will take place on Thursday morning, with the traditional bell ceremony marking a new introduction.
The range of the share price is between 16.50 and 19.90 euros for institutional investors, individuals benefiting from a discount of 2% bringing this range between 16.17 and 19.50 euros.
Given the enthusiasm noted during the subscription period, the final price of the share should logically be at the high end of the range.
It remains to be seen whether, and when, the State will exercise its over-allotment option, ie the placing on the market of an ultimate batch of shares which is kept in reserve in case of high demand.
- The triple-winning state -
With a maximum number of 99.32 million shares placed on the market, the transaction could bring the state up to 1.9 billion euros.
In total, the French Games would be valued between 3.15 and 3.8 billion euros, according to its CEO, Stéphane Pallez, at the helm of the group for five years.
Heir to the national lottery created in 1933, the FdJ is one of the few French public companies in good financial health. His name is also very familiar to the French, who still bet last year nearly 16 billion euros in gambling.
For this privatization, the whole stake of the government was to seduce the small savers, especially since it is the first time since 2005 and the entry on the Stock Exchange of EDF that the general public will be associated with such an operation initiated by the State.
To convince them to invest, several benefits have been reserved for small savers: in addition to a discount of 2%, they will also be awarded one free action for 10 purchased if they keep for 18 months.
The state will triply win in the operation: in addition to the money from the sale of its shares, it will continue to pocket the some 3.5 billion euros in tax and social revenue paid each year by the FDJ, even after privatization. And he will receive 380 million euros from the company in exchange for the monopoly to operate for 25 years lottery games and sports bets in its physical network.
© 2019 AFP