5 days Ago By [email protected] (Anna Wise, PA Business Reporter, Lawrence Matheson)
Canal+, a heavyweight in French TV and film production, has sparked excitement in the City by launching on the London Stock Exchange, marking one of the most significant new listings London has seen in years. Valued at £2.6bn as trading kicked off on Monday, shares initially hovered just below 260p but experienced a slight dip to 245p post-9am.
The move by Canal+, headquartered in Paris, to opt for the UK capital's stock market was celebrated by Chancellor Rachel Reeves as a strong "vote of confidence". Known for producing smash hits like the Paddington movies, Back to Black , and Love Actually through its subsidiary StudioCanal, the media giant recently witnessed shareholders of its previous parent company Vivendi agree to the spin-off of its three key segments into individual entities the communications arm Havas, publishing powerhouse Louis Hachette Group, and Canal+ itself. While Canal+ made its market debut in London, Havas took to Amsterdam, and Louis Hachette planted its flag in Paris.
On the eve of this landmark flotation, Ms Reeves, who had mingled with the top brass from Canal+ on Friday, expressed her thrill at the decision indicating that the UK remains an attractive destination for major international firms. Canal+'s big cheese, Maxime Saada, Chairman and CEO, underscored their choice by asserting that "London is the best location for Canal+, as a global media and entertainment powerhouse, to list as a publicly traded company". London's stock market has witnessed a trend of companies shifting their primary listings overseas and numerous listed entities being snapped up by private acquisitions.
Among the notable initial public offerings (IPOs) in London this year were the tech firm Raspberry Pi, based in Cambridge, which hit a valuation close to £540m in June, and the sports nutrition company Applied Nutrition, which achieved a valuation of about £350m in October. Susannah Streeter, the head of money and markets at Hargreaves Lansdown, described Monday's market debut as "disappointing". "It was not a blockbuster open for the film production company which saw shares fall by more than 13%," she commented.
"However, IPOs are often hit with volatility during the first few hours, days and even weeks of trading, and the choice of London as a destination for the spin off company is still a boost for the City, especially given that the decision was made due to London's appeal among international investors." "Its former parent company Vivendi is also spreading cheer in Paris and Amsterdam where it has spun off Louis Hachette and Havas, which both rose as trading kicked off.".
