Florentaise: Ailing land specialist Florentaise completes IPO

(BFM Bourse) – The low-carbon soil specialist announced the success of its operation with an IPO price set at €9.44 per share, at the bottom of the indicative range. The shares will be listed on Euronext Growth from April 12.

A few hours can decide the future fate of a company on the stock market. Low-carbon soil pioneer Florentais experienced this at a time when IPOs were rare.

To ensure the success of its operation, the Nantes-based company granted a little extra time on Wednesday “at the request of several investors to facilitate their participation in the offer” made to them. Originally scheduled until 12:00 p.m., the offer time for the global location was then extended to 5:00 p.m.

Bottom of the range

As a result, Florentaise announced after the market on Wednesday the success of the operation and the upcoming listing of its shares for trading on the Euronext Growth market in Paris. The introductory price was set at 9.44 euros, at the bottom of the indicative range between 9.44 euros and 12.76 euros per share. On this basis, the market capitalization of Florentais is approximately €77.9 million. Management says it is proud to have “completed the Florentais IPO despite particularly adverse market conditions”.

In total, the Florentais share issue represents a gross amount of approximately €17.9 million (including €5.9 million excluding debt). In fact, the company received a subscription commitment of 12 million euros from Floreas, the holding company of the family of Jean-Pascal Chupin, the group’s CEO and the eldest son of founder Jean Chupin. The subscription of securities was carried out by offsetting debts, i.e., for simplicity, by converting debt into capital. The amount raised is far short of the 28 million euros the company wanted to get based on the midpoint of the price range, or 11.1 euros per share.

The net proceeds amount to €4.7 million and 70% will be used to repay the shareholder’s current account debt to Floreasy SAS and 30% will be used to finance working capital requirements. current (except for the renewal of his short-term credit line).

A point that surely dissuaded small porters from participating in the Florentais adventure. Approximately 6% of individual investors participated in the open price offer for an amount of around 1.1 million euros. The balance, 94%, was subscribed in an offer to institutional investors, representing a demand of approximately EUR 16.7 million. The total expressed demand in this context amounted to 1,891,893 titles.

Jean-Pascal Chupin, Chairman and CEO of Florentais, would also like to thank “sincerely all the French and international institutional shareholders as well as the individuals who support us in this new phase of Florentais’ growth”. “We are pleased to have additional financial resources to implement our development strategy,” continues the manager.

Start of negotiations on April 12

Founded in 1973, the company plans to use the IPO funds to increase its production capacity for its European and Chinese markets. In addition, the proceeds from the capital increase will enable it to finance the new “Bivis” machines. These machines enable the production of wood fibers replacing peat.

Its approximately 600 references in own or distributor brands are sold in major brands such as Truffaut, Botanic, Lidl and Intermarché. In the medium term, the company expects to generate sales of €120 million and an operating margin of more than 20% by its financial year ending June 2027.

The press release specifies that the settlement-delivery of the shares will take place on April 11, 2023 and that the shares “will be admitted to trading on the Euronext Growth market, from April 12, 2023”, i.e. next Wednesday, under the ISIN code: FR001400GO75 and the mnemonic code ALFLO. Florentaise will thus join online driving education specialist Lepermislibre, which took its first steps on the Paris Stock Exchange last February. The company thus unlocked the IPO counter for 2023.

Sabrina Sadgui – ©2023 BFM Bourse

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