FDJ kicks off first step of privatisation

The French lottery group FDJ has received approval from the stock market operator to register its listing document.

France.- The French government will privatise Française des Jeux (FDJ) in November. As part of its initial public offering plans, FDJ received on Friday approval from France’s stock market operator to register its listing document and kick off the privatisation.

Stephane Pallez, chairwoman and CEO of FDJ, said that they will set the price of the IPO next month, adding that the government wants to attract as many small shareholders as possible. “I can’t answer a question about the price today because the state has its own process to fix a price,” she told RTL radio, Reuters reported. “We’re more talking about dozens of euros than a hundred euros,” Pallez added. She said that they will also launch a marketing campaign at the end of this week.

“We’re a company that, for the past 25 years, has adopted a regular growth model, with regular results. Also, we’re a steady growth stock not a speculative share,” Pallez said.

The IPO will kick off on November 7

Bruno Le Maire, France’s finance minister, said that the subscription period for FDJ’s IPO will run from November 7-20. He added that the state won’t fix a limit for the offering. Retail investors will get one free share for every 10 shares purchased and a 2% discount on the offer price.

The French state currently holds 72% of FDJ, but after the privatisation, it will only have 20% of the company. Government spokeswoman Sibeth Ndiaye said that the ordinance ends the FDJ monopoly to replace it with a limited-term right, set at 25 years and renewable.

“I hope that this privatisation popularly succeeds with the widest participation possible,” Le Maire said. The minister added that the privatisation will allow the company to develop and reach its full potential.