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Believe formally launches its IPO, should arrive on Paris stock exchange next week
By Chris Cooke | Published on Wednesday 2 June 2021
Music distributor and artist services business Believe formally launched its Initial Public Offering yesterday, with the company’s shares set to start trading on the Euronext Paris stock exchange on 10 Jun.
Believe confirmed its plan to IPO last month after the French securities regulator AMF approved the documentation it had submitted for the stock market listing.
It said at the time that it would use monies raised by the share sale to fund a growth strategy that involves building “the leading global artist digital development platform, by continuing to invest to broaden its global footprint, pursue its disciplined external growth strategy and enhance and expand existing capabilities through investments in its technological platform”.
As for how much money there will be to fund that growth strategy, it was originally indicated that the company would seek to raise about 500 million euro via the IPO. However, yesterday the target figure was revised to around 300 million euro, with shares expected to be priced between 19.50 and 22.50 euros, giving the business a valuation of between 1.9 billion and 2.1 billion euros.
The company is hoping to cash in on investor interest in a recorded music business that has been in growth for more than five years now on the back of the streaming boom, and which has – in the main – not been greatly effected by the COVID pandemic.
It will also seek to excite investment types about its status as an artist and labels services business rather than a conventional record company.
Which means it provides services to and works in partnership with artists at all levels, from offering simple basic distribution to DIY musicians via its TuneCore division, through to deals with bigger name artists – and other labels – where it provides a plethora of creative, marketing and business services on top of distributing a client’s recordings. Plus, there are some more conventional labels within the group too.
Setting out his pitch, the company’s founder and CEO Denis Ladegaillerie says: “Our ambition is to become the 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 creation. Over the past few weeks, we have met with a number of investors who have understood why Believe is ideally positioned to benefit from the digitalisation of the music market and the rise of independent artists and labels”.
Noting specific investor interest in the IPO, he goes on: “This is notably the case of the Fonds Stratégique de Participations, which will invest 60 million euros to participate in this IPO. This transaction aims to build a solid and balanced shareholder base alongside TCV, our historical long-term shareholder specialising in technology companies, at a time when Believe is accelerating its development driven by its profitable growth trajectory”.
