By Shares of CANAL+, the French-owned film and TV production giant behind the popular Paddington movies, debuted on the London Stock Exchange today.
While shares fell almost 16% after their debut, the listing marks a rare bright spot in an otherwise bleak year for London’s IPO market, with the company valued at approximately £2.6 billion.
This float is part of Vivendi’s sweeping restructuring, which involves breaking up its operations into three independent entities: CANAL+, communications and marketing firm Havas, and publishing division Louis Hachette Group.
CANAL+’s London debut is the capital’s only £1 billion-plus flotation in 2024.
Despite its impressive valuation, CANAL+ is not expected to meet the FTSE 100 eligibility criteria.
Shares opened at 259p, with 1 billion shares issued.
Meanwhile, Havas is set to list in Amsterdam and Louis Hachette in Paris, diversifying Vivendi’s investment footprint across Europe.
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.
Vivendi’s breakup and the ‘conglomerate discount’
Vivendi’s breakup, backed by 97.5% of shareholders, was orchestrated by billionaire Vincent Bolloré, who owns a 29% stake in the conglomerate.
The decision to dismantle Vivendi stems from what the company called a “conglomerate discount,” where its collective operations were undervalued.
At 10:13 a.m. London time, shares of Canal+ were trading at approximately 243 British pence ($3.07), reflecting a 15.7% decline from their session opening.
Meanwhile, Vivendi’s Paris-listed shares surged by 33.2% during the same period.
“Vivendi was suffering from a conglomerate discount. So when you looked at the value of Vivendi, it was less than 10 billion euros [$10.52 billion], and the estimate of the sum of the parts was much greater than that. So to unlock that value potential of each of these assets, hence the split,” Maxime Saada, CEO of Canal+, told CNBC’s “Squawk Box Europe”.
CANAL+ follows in the footsteps of Universal Music Group, Vivendi’s 2021 Amsterdam spin-off, which now boasts a market capitalization of €44.8 billion—five times Vivendi’s current valuation of €8.8 billion.
CANAL+ began as a French subscription TV channel 40 years ago and has since grown into a global media powerhouse.
It now operates in 52 countries, has 26.8 million subscribers, and reaches over 400 million monthly users on its OTT and streaming platforms.
It also owns Studiocanal, producer of the Paddington films, and recently expanded by acquiring South African pay-TV leader Multichoice.
Can CANAL+’s listing boost the London IPO market?
CANAL+’s listing offers a glimmer of hope for London’s IPO market, which is experiencing its worst year since the 2008 financial crisis.
So far, 88 companies have delisted or moved their primary listings, while only 18 have gone public in 2024.
Over £100 billion worth of listed companies have taken steps to exit London’s stock market this year, either through takeover agreements or by choosing to delist.
The exodus includes major players like Ashtead, an FTSE 100 equipment rental firm, which announced plans to shift its main listing to the US for better valuations and deeper liquidity.
Tom Snowball, head of UK equity capital markets at BNP Paribas and an adviser to Canal+ on the IPO, told City AM that it would be “a positive for the general narrative and sentiment” after a lackluster year for the capital’s flagship bourse.
Richard Hunter, head of markets at Interactive Investor, added that the listing “represents a welcome relief for the London market”, City AM said.
What to expect of listings in 2025?
Market insiders are cautiously optimistic about 2025.
High-profile potential listings include Shein, the fast-fashion giant, which is eyeing London after shelving US IPO plans due to allegations of forced labor in its supply chain.
Insurer Canopius and consumer credit firm Newday are also preparing for floats that could be valued at £3 billion and £1.5 billion, respectively.
“We would hope 2025 does indeed give a more supportive market backdrop for new listings,” Snowball said.
“There has been a recent knock to the confidence of both businesses and consumers, and we need to move beyond this and more generally see a stock market recovery – especially of the FTSE 250.”
But Hunter said the listings set for next year “would represent a trickle rather than a flood” and that “the general direction of travel has been away from the UK market, and the FTSE 100 in particular more recently”.
London’s financial ecosystem faces stiff competition from US markets, which continue to attract companies with higher valuations and deeper investor pools.
Snowball noted, “Listings in the first half of 2025 are likely to remain selective, but we anticipate a stronger pipeline later in the year.”
The wave of departures from London’s stock market has spurred the government into action, prompting efforts to revamp listing regulations and reform the domestic pensions system to bolster capital markets.
“There have been signs that the UK is beginning to position itself as a more attractive investment destination,” Hunter said. “But given the strength of the opposing tide, it is rather too early to call a full-blown recovery.”
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