The registration document has just been approved by the Autorité des marchés financiers (AMF) for an IPO of 500 million euros. The music group wants to continue its acquisitions to the tune of 100 million euros per year. The energy supplier ekWateur is also being listed on the Paris stock exchange.
Believe's IPO project has just reached a decisive stage with the approval of the registration document by the Autorité des marchés financiers (AMF). The French company specializes in supporting independent artists and labels and defines itself as one of the world leaders in the digital music market.
"As of December 31, 2020, Believe is present in more than 50 countries with 1,270 employees, and provides solutions to more than 850,000 artists (directly or via their label) who have generated more than 100 billion streams and 375 billion views in 2020", explains the press release.
The approval of Believe's registration document is a first step towards listing on the regulated market of Euronext in Paris. The completion of this transaction remains subject to the approval by the AMF of the prospectus relating to the offer as well as favourable market conditions, the company said.
Major shareholders
Founded in 2005 by Denis Ladegaillerie (still the owner of about 15% of the shares), Believe is part of the Next 40, a label created in 2019 by the French government to support and promote 40 young French companies likely to become technology leaders.
Its main current shareholders are TCV Luxco BD S.à.r.l (49.64%), investment funds managed by Ventech (20.34%), investment funds managed by Siparex XAnge Venture (8.06%)
Believe plans to raise around €500 million to accelerate a very ambitious growth strategy. Over the period 2022 - 2025, the Group wishes to make targeted acquisitions for investment amounts of around €100 million per year.
In the last six years, the Group has already made no less than 18 acquisitions in seven different countries, ranging from technology platforms to labels.
Strong business growth
The group claims to be profitable and has been very dynamic for several years: "The Group has recorded strong growth in its business over the past few years, from consolidated revenue of €238.1 million in the year ended 31 December 2018, to €394.5 million in the year ended 31 December 2019, and €441.4 million in the year ended 31 December 2020, representing a CAGR of 36.2% over the period. In the three months ended 31 March 2021, the Group continued its momentum with consolidated revenue of €124 million (an increase of 26% compared to the three months ended 31 March 2020)."
However, the 2020 financial year ended with a loss of €26.3 million, following profits of €4.6 million and €2.5 million in 2019 and 2018. Over the 2018-2020 period, the group says it has seen a sharp increase in "technology and product" spending and in its marketing and sales costs.
Repayment of existing credit agreement
"At the time of its IPO, the Group intends to proceed with the full repayment of the existing credit agreement using the proceeds of its capital increase, at the same time as setting up a new revolving credit agreement", the registration document states.
Citi, J.P. Morgan and Société Générale are acting as global coordinators and joint bookrunners, while BNP Paribas, Goldman Sachs, HSBC and UBS are acting as joint bookrunners on the IPO. Rothschild & Co. is acting as independent financial advisor to Believe.
Launch of the ekWateur operation
More modest but also more advanced, the IPO of ekWateur was also announced earlier this week. Created in 2015 by Jonathan Martelli and Julien Tchernia, the independent green energy provider is increasing its capital by between €38.3 and €44 million. The price of the offer, which will close on 24 May, could be in the range of €7.57 to €10.23 per share.
"Our IPO will provide us with the necessary resources to accelerate our commercial conquest and development of new innovative offers, while preserving our independence, by associating our our employees and customers to our growth and by expanding our community to new parties stakeholders"Julien Tchernia, Chairman and CEO of ekWateur, which is also a Next40 nugget, commented.
Portzamparc (BNP Paribas Group) and Natixis are accompanying the issuer in this transaction. Sponsor Finance is acting as advisor.