Published on Dec 21, 2023 at 7:12
The Planisware was much anticipated this year as a public offering. It was expected to revive Euronext Paris. The software publisher hoped to raise 241 million euros in October. However, at the last moment, the offering had to be postponed due to a deteriorating market environment, causing investors to proceed with caution.
2023 has been a slow year for Euronext Paris in terms of IPOs, with only six operations on Euronext Growth (for small and medium-sized companies) and a total of 61 million euros raised. 2022 was not very good either, with only 484 million euros raised, marking the worst year in a decade.
Florentaise, the specialist in growing media for plants, raised only 18 million euros in April, making it the largest IPO of 2023. In order to ensure the success of the operation, the Nantes-based company extended the deadline for several investors to facilitate their participation in the stock offer. The global placement period was extended from noon to 5 pm.
Prior to Florentaise, Lepermislibre had made its debut on the stock market, raising 8 million euros on February 13. Only four other companies made their debut at the Paris Stock Exchange: Mon courtier énergie, Osmosun, Vinpai, and Stif, in mid-December, just before year-end.
Even as the CAC 40 hit a historic high in mid-December, explaining such a slow year is challenging. Stéphane Boujnah, the CEO and Chairman of Euronext explains, “We are in a process of adjusting valuations. It takes time for companies and investors to accept selling assets at a lower price than hoped. Interest rates have become the most important indicators in valuing assets. Market participants currently only look at interest rates. When they stop rising, as seems to be the case, valuations will stabilize.”
Boujnah is confident about the upcoming year, stating, “There is no shortage of candidates for the stock market. On the contrary, mature, growing companies that need to raise funds are more numerous than in the past.” For 2024, he is confident in the ability of the Paris Stock Exchange to attract new recruits. “We have many operations in the pipeline. At least four spin-offs are planned in Paris, including Sanofi, Vivendi, Sodexo, and Renault, for the coming year. Additionally, many technology companies, supported by private and public financing, are now ready to enter the stock market,” explains Boujnah.
