Canal+, the renowned French TV and film giant best known for producing the beloved Paddington movies, has officially made its debut on the London Stock Exchange. This listing arrives as both a boon for the struggling UK market, which has seen its worst year for corporate exits since the financial crisis, and as a pivotal moment for Canal+ itself, reflecting its ambitions for global expansion.
Shares opened at 290p, valuing the firm at approximately £2.6 billion ($3.1 billion) — significantly below earlier estimates. Just hours after the markets opened, investors saw shares plummet nearly 20% to around 231p, causing concern about the company's initial reception by the market. This drop is largely attributed to Vivendi shareholders who were forced to sell Canal+ shares due to restrictions on owning non-French stocks.
The UK Chancellor Rachel Reeves hailed Canal+’s listing as a “vote of confidence” for the UK financial markets. "Attracting more investment to the UK is key," she emphasized during her remarks. With Canal+ stepping onto the LSE stage, the hope is to reverse the trend of companies ditching the London market for more lucrative options abroad. Already this year, 88 companies have either delisted or shifted their primary listings from London, leaving only 18 newcomers.
Canal+ emerged as the only £1 billion-plus flotation for 2024, and it came as part of the media behemoth Vivendi’s larger restructuring strategy, which included the spin-off of the communications and marketing group Havas and the publishing division Louis Hachette Group. While Canal+ faces challenges, other divisions have fared relatively well on their respective lists.
Maxime Saada, CEO of Canal+, had previously hinted at the strategic importance of the UK to the company during the lead-up to the listing. "We got feedback from American companies about Paddington being not American enough," he told the BBC, reassuring fans of the iconic bear. "This is the most British bear, and we are making sure to preserve his heritage as we move forward with new projects." The company not only values its intellectual properties such as Paddington but is also making strides with new content including plans for future films and expansions.
Despite uncertainty surrounding its market debut, Canal+ maintains confidence. A source told Deadline, "Canal+’s management is largely satisfied with the debut and expects the share price to rise steadily going forward." Observers agree, with Susannah Streeter, head of money and markets at Hargreaves Lansdown, remarking, "Market debuts can often be hit with volatility during the first hours, days and weeks of trading."
The economic significance of Canal+’s listing should not be understated, especially in light of the London Stock Exchange’s recent challenges. Economists note the importance of having vibrant public markets, as they allow companies to raise funds for new initiatives, which, in turn, stimulates the economy. The turbulent market conditions of late have sparked concerns from business leaders who are advocating for changes to attract more public listings.
While Canal+ faces headwinds, many hope its presence will reignite interest and investment, bringing about a renewed focus on the London markets. The company has witnessed substantial international interest, thanks to its diverse portfolio, which includes popular franchises and coveted intellectual properties. It operates on many platforms across over 50 countries, with ambitions to deepen its penetration globally.
Looking forward, the listing could serve as both an opportunity for growth and as part of the universal rethink of the UK’s attractiveness as a market for international investment. Saada reiterated the role of the UK’s creative industry as fundamental to their operations. "We have long-standing relationships here, and we believe it is key for our future gains."
Despite the initial challenges, the positive outlook expressed by Canal+ and UK officials speaks to potential resilience, with hopes for the company to regain its footing after its rather rocky start. For now, all eyes are on Canal+, hoping it will not only stabilize its present standing but will also invigorate the market overall.
