Believe Valued at $1.9B After Rocky Debut on Paris Exchange

French digital music company Believe is valued at 1.6 billion euros ($1.9 billion) after a bumpy first day of trading on the Euronext Paris stock exchange.

Believe Valued at $1.9B After Rocky Debut on Paris Exchange

French digital music company Believe is valued at 1.6 billion euros ($1.9 billion) after a bumpy first day of trading on the Euronext Paris stock exchange.

Despite launching an IPO while the fast-growing digital music market attracts heavy investor interest, Believe’s shares got off to a rocky start in its Paris bow. Shares opened at 18.40 euros and fell as far as 15.87 euros – 18.6% below its 19.50 euro IPO price — before closing at 16.20 euros.

First-day trading capped a string of lowered expectations for the owner of digital distributor TuneCore and metal label Nuclear Blast, among other companies. Believe’s IPO on Wednesday (June 9) valued the company at 1.9 billion euros ($2.3 billion) and raised 300 million euros ($365.4 million) — up to 330 million ($402.9 million) with over-allotment. But it had priced its IPO at the bottom of its price range of 19.50 to 22.50 euros. Prior to that, Believe downgraded its IPO target to 300 million euros from 500 million to 300 million euros when Believe launched its IPO on June 1.

Still, the 1.6 billion valuation gives Believe a 3.6 ratio of enterprise value to 2020 revenue – well under Warner Music Group’s 4.8 based on Wednesday’s closing price. Believe is hoping to build a larger footprint in an increasingly global music marketplace and keep pace with acquisition-hungry competitors.

“The funds raised will allow us to invest in our innovative technology platform and to implement our ambitious strategy of targeted acquisitions,” founder and CEO Danis Ladegaillerie said in a statement.

Believe says it will use 90 million Euros to repay funding from an existing credit agreement while it starts a new 170-million revolving credit facility that gives Believe ammunition for expansion.

An unprecedented migration of private companies to public stock exchanges has changed the shape of the music business. The trend began in earnest in 2018 with Spotify’s direct listing on the New York Stock Exchange and Hipgnosis Songs Fund Ltd’s IPO on the London Stock Exchange. Warner Music Group braved the onset of the pandemic to raise $1.9 billion in a May 2020 IPO on the Nasdaq exchange. Round Hill Music Royalty Ltd. — like Hipgnosis an alternative investment fund — went public on the London Stock Exchange in October 2020.

More companies have announced their plans or intention to trade on public exchanges. Sensing opportunity in a hot market, French media conglomerate Vivendi will spin off  Universal Music Group on the Amsterdam Euronext exchange by September 2021. Reservoir Holdings will go public through a reverse merger with a $115 million SPAC, Roth CH Acquisition II that was announced but not yet consummated. Indian music streaming service JioSaavn adopted a plan for an IPO in April 2020 but has not moved forward.

The company’s two largest shareholders have nearly 60% of outstanding shares — TCV owns 41.7% and Ventech owns 17.1%. (These numbers show ownership before additional shares that the IPO underwriter might sell.) Ladegaillerie has a 12.6% equity stake worth $291.6 million. The float — shares available to the public — represent only 14.35% of outstanding shares.

Source : Billboard More   

What's Your Reaction?

like
0
dislike
0
love
0
funny
0
angry
0
sad
0
wow
0

Next Article

‘Fiel’ Takes Los Legendarios, Wisin & Jhay Cortez to No. 1 on Latin Airplay Chart

The team-up by Los Legendarios, Wisin and Jhay Cortez turned out to be profitable as their latest “Fiel” hits No. 1 on the Latin Airplay chart (dated June 12) in its sixth week.

‘Fiel’ Takes Los Legendarios, Wisin & Jhay Cortez to No. 1 on Latin Airplay Chart

The team-up by Los Legendarios, Wisin and Jhay Cortez turned out to be profitable as their latest “Fiel” hits No. 1 on the Latin Airplay chart (dated June 12) in its sixth week.

The track rises with a 51% gain in audience impressions, to 8.9 million, earned in the week ending June 6, according to MRC Data. It earns both Los Legendarios and Cortez’s second leader. Wisin adds a 19th No. 1 to his scorecard, the sixth-most in the history of the chart which launched in 1994.

Here’s a recap of the artists with most Latin Airplay No. 1s:

31, Enrique Iglesias

29, J Balvin

24, Daddy Yankee

23, Ozuna

20, Maluma

19, Wisin

18, Romeo Santos

“Fiel” was released Feb. 4, via La Base/WK and is part of Los Legendario’s third studio album, Los Legendarios 001. The duo, comprised of Marcos Ramírez and Víctor R. Torres, claimed its first top 10 on any Billboard albums chart when the 19-track set rose 13-9 on the Top Latin Albums chart dated May 8 (a No. 8 peak, May 28-dated list).

The pair previously scored a Latin Airplay No. 1 with “Mi Niña,” a Wisin-assisted collaboration which also paired up with Myke Towers.

As for Wisin, who takes his 19th leader, “Fiel” is his fourth consecutive No. 1, starting with “Gistro Amarillo,” with Ozuna (Dec. 2020).

Beyond its Latin Airplay coronation, “Fiel” also tops Latin Rhythm Airplay, with an 8-1 surge.

Ozuna’s 28th Top 10:  Elsewhere on Latin Airplay, Ozuna adds a new top 10 to his career board as “Tiempo” ascends 13-7 with 6.6 million in audience impressions, up 29%.

The lift grants Ozuna his 28th top 10, the fifth-most on the tally, trailing Daddy Yankee (42), Enrique Iglesias (40), J Balvin (34) and Shakira (32).

“Tiempo” was written by Ozuna alongside Sky Rompiendo.

Source : Billboard More   

This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies.