Paris (AFP)

The action French Games (FDJ) made its first steps on the stock market Thursday, introduced at a price of 19.90 euros and driven by the keen interest of small and large investors for this privatization which will bring 2.1 billion euros to the 'State.

To mark the beginning of the listing of the title at 9 o'clock in Paris, the traditional bell will be symbolically sounded on the premises of the Euronext exchange operator.

The Minister of Economy and Finance Bruno Le Maire, who will attend this ceremony, has already rejoiced Wednesday of a "spectacular success", by revealing the details of this operation largely open to the general public .

At the end of the subscription period, which began on 7 November and was strongly supported by government incentives, more than 11 billion euros of shares were requested - ie 1.6 billion from the general public and 10 billion from institutional investors (funds, companies, banks, insurance companies, etc.).

In total, "half a million people" participated in the subscription, said the minister.

And while the initial range of the action was between 16.50 and 19.90 euros, its final price was logically stopped at the highest possible level, reflecting the infatuation of investors.

This stock market should thus value the French group Games as a whole to "about 3.7 billion euros," said the company.

"These results are a mark of confidence in the future of the group," welcomed its CEO Stéphane Pallez, while the Agency of State Participation (APE) noted "considerable demand" from the general public, employees of the FDJ and retailers in its network.

With this privatization, the State sells a total of 99.32 million shares, "for a gross amount of about 1.888 billion euros, or about 52% of the capital of FDJ", according to the EPA.

But in total, said the Mayor, the state will pocket "2.1 billion euros, including 380 million euros of cash" - or the amount that will pay the FDJ in return for the monopoly to exploit for 25 years of lottery games and sports betting in his physical network.

Above all, the gaming operator will remain a bonanza for public finances: the state will continue to reap, even after privatization, the tax and social revenues paid each year by the FDJ, which amounted in 2013 to 3.3 Billions of Euro's.

- Overallocation pending -

The government spared no effort to popularize underwriting: to convince small savers to invest, it gave them a 2% discount on the price of the securities, as well as a free share for every ten bought on condition that they are held for 18 months.

However, depending on the evolution of the stock market in the next days or weeks, the State can exercise until December 20 option of over-allotment, that is to say the placing on the market of 11 , 35 million additional actions, "for a total amount of about 226 million euros," according to the EPA.

If this over-allocation is fully exercised, and once the allocation of shares reserved for employees has been completed, the State will ultimately only hold 21.91% of the capital of FDJ, the group said.

© 2019 AFP