(News Bulletin 247) – The specialist in low-carbon potting soils has announced the success of its operation with an IPO price set at 9.44 euros per share, i.e. at the bottom of the indicative range. The shares will be listed from April 12 on Euronext Growth.

A few hours can determine the future stock market fate of a company. The pioneer of low-carbon soils Florentaise experienced this in a period when IPOs are rare.

To ensure the success of its operation, the Nantes company had granted a little extra time on Wednesday to “the request of several investors in order to facilitate their participation in the offer” which was dedicated to them. Initially scheduled until 12:00 p.m., the offer period for the global placement was then extended until 5:00 p.m.

Bottom of fork

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

In total, the issue of Florentaise shares represents a gross amount of approximately €17.9 million (including €5.9 million excluding offsetting of receivables). The company has indeed received a subscription commitment of 12 million euros from Floreasy, the holding company of the family of Jean-Pascal Chupin, the group’s CEO and eldest son of the founder, Jean Chupin. The subscription of the securities was done by offsetting claims, that is to say, to simplify, by converting debt into capital. The amount raised is a far cry from the 28 million euros the company wanted to raise based on the middle of the price range, or 11.1 euros per share.

The net proceeds amount to 4.7 million euros and will be dedicated up to 70% to the reimbursement of a debt of shareholders’ current accounts towards Floreasy SAS and 30% will be dedicated to the financing of the working capital requirement. (in addition to the renewal of its short-term credit lines).

A point that has surely put off the small carriers to participate in the Florentaise adventure. Some 6% of individual investors took part in the open price offer for an amount of approximately 1.1 million euros. The balance, ie 94%, was subscribed under the offer intended for institutional investors, representing a demand of around 16.7 million euros. In this context, the total demand expressed thus amounted to 1,891,893 shares.

Jean-Pascal Chupin, CEO of Florentaise also wishes to warmly thank “all the French and international institutional shareholders as well as the individuals who are supporting us in this new stage of Florentaise’s growth”. “We are delighted to have additional financial resources to pursue our development strategy” continues the manager.

Beginning of negotiations on April 12

The company, founded in 1973, plans to use the funds from its IPO to increase its production capacity to serve its European and Chinese markets. In addition, the proceeds from the capital increase will also enable it to finance new “Twin-screw” machines. These machines make it possible to manufacture wood fibers to replace peat.

Its some 600 references in own brands or private labels are sold in major brands, such as Truffaut, Botanic, Lidl, or Intermarché. In the medium term, the company expects to generate revenues of 120 million euros and an operating margin of more than 20% by the end of its financial year ending in 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 ALFLO mnemonic code. Florentaise will thus join the specialist in learning to drive online Lepermislibre, which took its first steps on the Paris Stock Exchange last February. The company had thus unlocked the IPO counter for the year 2023.