FDJ’s IPO to bring €2 billion in proceeds
The initial public offering of FDJ will bring the French government around €2 billion in proceeds for selling a 52% of its stake.
France.- French Finance Minister Bruno Le Maire revealed on Wednesday that the privatisation of Française des Jeux (FDJ) is set to bring €2 billion in proceeds after its initial public offering (IPO), which was over-subscribed. Shares are due to start trading today.
The €2 billion in proceeds are due to the stock price being set at €19.90, which is the top of the initial price range that the government had set. Investors and individuals have asked for a total of €11 billion of shares, a “spectacular success,” he said, adding that 40% of the titles would be reserved for individuals.
The initial price range was between €16.50 and €19.90, with a discount of 2% for the general public. “We decided to increase the share reserved for the private investors from 33% to 40%,” said the minister, who added that those who subscribed less than €2000 euros “will be fully served.”
At the end of the operation, the government will hold 20% of the capital, while individuals will hold more than 21%, Le Monde reported. Veterans will see their position strengthened, while employees of the group will hold between 5% and 7% of shares. In total, “the State, the historic shareholders and the French will own more than 60% of the capital” of the FDJ.
New authority
As part of the privatisation, the French government unveiled the creation of the L’autorité nationale des jeux (ANJ), which will replace L’autorité nationale de régulation des jeux en ligne (ARJEL).
The Minister of Action and Public Accounts, Gerald Darmanin, announced that ANJ will be in place on January 1. The Council of Ministers created the order and specified the terms of the privatisation of FDJ. The authority will be in charge of all gambling activity except casinos in France.
