Distribution and services company Believe officially went public today (June 10), debuting on the Paris Euronext this morning.
The company floated 14.35% of its equity via its IPO, raising €300 million in the process.
Subsequent to the IPO, TCV will continue to own 41.67% of Believe, while the music company’s founder and CEO, Denis Ladegaillerie, will own 12.62%. Another major shareholder, Ventech, will own 17.08%.
Believe has so far chosen not to activate an additional over-allotment of shares, which would have seen it raise €330 million in total, and float 15.7% of its company.
However, the firm reserves the right to do so, via stabilization agent J.P Morgan, up until July 9.
Believe priced its IPO at €19.50 per share, giving it a €1.9 billion market cap valuation.
Institutional investors in the IPO included Fonds Stratégique de Participations (FSP), who acquired €60 million’s worth of shares.
Believe opened on the Euronext today at €18.40 per share, and ended the day at €16.05.
Denis Ladegaillerie rang the bell on Believe’s public debut at a Euronext gathering in Paris this morning.
In a subsequent statement, Ladegaillerie, who founded Believe in 2005, said: “Believe is crossing a new threshold in its development by going public. The funds raised will allow us to invest in our innovative technology platform and to implement our ambitious strategy of targeted acquisitions.
“This transaction was also intended to build a solid and balanced shareholder base alongside TCV, our long-term shareholder. We are delighted to welcome the Fonds Stratégique de Participations (FSP), a long-term investor that supports the development of French champions, and Sycomore Asset Management, a leading player in responsible investment.
“Believe is crossing a new threshold in its development by going public.”
Denis Ladegaillerie, Believe
“This listing gives us the means to accelerate our development by fulfilling our mission to develop independent artists and labels in the digital world with respect, fairness and transparency.”
Ladegaillerie added: “Thanks to our historical investors for their support – notably Ventech and XAnge, Thanks to our artists and labels for their loyalty and trust. Thanks to our fantastic teams for their dedication and engagement. Thanks to our partners for their willingness to continue to innovate with us.
“We have an exciting journey ahead of us and I can’t wait to continue shaping the future with you and building with you the global leader in developing independent artists and labels in the digital world.”
Believe intends to spend up to €100 million each year in 2021, 2022, and 2023 on acquisitions, Ladegaillerie confirmed.
Believe’s consolidated revenues hit €124 million in Q1 2021 (which Believe calls its most “prolific” ever quarter), up by 26% (+23% organic) on the same period of 2020.Music Business Worldwide