When Paris-based Believe announced on Tuesday (June 1) that it had launched its IPO in Paris, some were puzzled to see it was only looking to raise € 300 million, as opposed to the originally proposed 500 Million euros that it could bring back in early May.
Within hours of the IPO announcement, Believe CEO Denis Ladegaillerie explained the move: He told the French media that Believe had made the decision to partially lower its increase target because it would be “less dilutive” for current shareholders.
The 300 million euros would be enough to finance the sales and service company’s acquisition plans until the end of 2023 – after that there will be “more interesting options” to raise another 200 million euros and more.
What the Ladegaillerie seemed to achieve was that Believe – which is currently worth around 2 billion euros – had decided to go public via the IPO (around 15%) than originally planned, since the company was up would be worth significantly more in 2023 than it is today and could rise again in a stronger position.
It didn’t, he told us, because Believe was concerned about weak demand from potential shareholders.
He definitely got it right. According to reports from Bloomberg and Reuters this morning (June 4th), Believe has already attracted enough investor demand to fill the entire order book for the initial offering of 15,384,616 shares from the IPO. It did so within just three working days of the Tuesday morning announcement.
In addition, Believe has also secured maximum demand for a greenshoe allotment of additional shares valued at 10% of the initial issue.
In other words, it’s a surefire thing that Believe has completed IPO share sell orders that will bring in the desired $ 300 million plus 10% more (totaling $ 330 million).
We already know who one of these shareholders will be: Believe announced on Tuesday that the Fund Stratégique de Participations (FSP) had committed itself to ordering shares worth 60 million euros as part of the IPO.
Believe will set the final price of its public offering next Wednesday (June 9th) and is expected to start trading on Paris Euronext the next day.
Believe’s consolidated sales reached 124 million euros in the first quarter of 2021 (which Believe calls the “most productive” quarter of all time), up 26% (+ 23% organically) over the same period in 2020.
Believe owns the DIY distribution platform TuneCore and operates its own artist and label services.
Believe Artist & Label Services gained new clients in the first quarter including multiple platinum British singer / songwriter James Morrison and Communion Records – the current home of Laurel, Bear’s Den and Lucy Rose who previously spearheaded the careers of Ben. started by Howard, Michael Kiwanuka and Catfish and the Bottlemen.Music business worldwide