The French indie distribution and service company Believe has started its IPO on Parisian Euronext.
The company – owner of TuneCore and various labels as well as its own indie services platform – has announced an indicative price range for the IPO between € 19.50 and € 22.50 with an initial issue of 15,384,616 new shares.
At the lower end of the indicative price range (19.50 euros) that would bring 300 million euros.
The start is already good: the Fonds Stratégique de Participations (FSP) has undertaken to place an order for Believe shares worth € 60 million as part of the IPO.
Believe has also announced an IPO over-allotment option equal to a maximum of 10% of its initial offering, which at € 19.50 per share would increase the increase to € 330 million.
The offering begins today (June 1) and is expected to end next Tuesday for shares in France (June 8) and next Wednesday (June 9) for international equity transactions.
Believe then expects to start trading on Paris Euronext on Thursday June 10th.
Denis Ladegaillerie, Founder and CEO of Believe, said: “Our goal is to become a global leader in developing independent artists and labels in the digital world. In the first quarter of 2021, Believe attracted the largest number of independent artists and labels since its inception. Over the past few weeks we’ve met a number of investors who understand why Believe is ideally positioned to benefit from the digitalization of the music market and the rise of independent artists and labels. This applies in particular to the Fonds Stratégique de Participations (FSP), which will invest 60 million euros to participate in this IPO. “
“In the past few weeks we have met a number of investors who have understood why Believe is ideally positioned to benefit from the digitalization of the music market and the rise of independent artists and labels.”
Denis Ladegaillerie, Believe
He added, “This transaction aims to build a solid and balanced shareholder base alongside TCV, our historic long-term shareholder specializing in technology companies, at a time when Believe is accelerating due to its profitable growth trajectory. This enables us to finance our growth, in particular through targeted acquisitions. Developing an innovative technological platform that has the best digital expertise on the market, with local teams close to artists and independent labels, to build relationships of trust with them based on respect, transparency and fairness: these are the fundamental elements that serve our ambition. Participation in this IPO, the first of a Next 40 company, is also an investment in the success of the artists and independent labels of tomorrow. “
(The Next 40 is a list of companies in France that have a bright future.)
In the first quarter of 2021, Believe secured a number of signings with major independent artists and labels.
Artists who signed contracts with the company included British singer / songwriter James Morrison, as well as heavy metal titans Sabaton (via Nuclear Blast) and Fumez The Engineer with his viral plugged-in series.
Among the labels to sign contracts with Believe in the first quarter were UK labels Communion Records – the current home of artists Laurel, Bear’s Den and Lucy Rose, who previously started the careers of Ben Howard, Michael Kiwanuka and Catfish and the Bottlemen . Other indie record labels signed with Believe in the quarter included dance label Cr2 Records and ZPR Media, one of the fastest growing new labels in Poland.
In Southeast Asia, Believe says it has signed an “unprecedented” 350 new independent artists and label partners during that period. This included Wut Pabon, one of the greatest artists from southern Thailand who has 1.1 million subscribers on YouTube. Believe’s new signings included Filipino TikTok viral hitmaker Lil Vinceyy and LoveIs, one of Thailand’s largest indie labels, which previously had a deal with Warner.
In a statement, Believe told MBW, “The first quarter has been the most productive quarter since Believe was founded and proves that its unique model is ideally positioned at the core of the music market transformation to attract more and more up-and-coming artists and labels , and to keep local top artists and labels successful. “
“We have signed more artists and labels from traditional major record labels than ever before in our history.”
Denis Ladegaillerie, Believe
Denis Ladegaillerie said of the first quarter: “We have signed more artists and labels from traditional major record companies than ever before in our history. These successes illustrate the accelerated change on the artist and label market. Artists and labels are looking for a different kind of relationship, digital-first expertise, to develop their releases at a time when digitization is now the majority of their revenue and offers better profitability. Believe offers this model and that makes us attractive. “
Jamie Emsell, Managing Director of Communion Music Group, said, “From our first discussions I was impressed by Believe’s ambition and her progressive perspective on the global marketplace. Believe also showed a great understanding of Communion Records’ past and shared our excitement about where we are going next. We are already doing a great job on behalf of the artists Communion is in partnership with and we look forward to doing a lot more. “
Mark Brown, Founder and CEO of Cr2, added, “I am very excited about our global distribution agreement and our partnership with Believe. After Cr2 Records was a self-releasing record label for 18 years, I felt the time was right to partner with Believe to expand and grow the label around the world while remaining independent. We are very happy to work with the Believe team and look forward to a successful year 2021 and beyond. “
And Closer Artists’ Paul McDonald said, “When you signed with Believe, James [Morrison] recognized a modern, young, dynamic international company with ambitions that match its own. Believe respected James’ successful history and looked forward to the next phase of his career. We’re really looking forward to seeing the entire Believe team in action. “Music business worldwide