(News Bulletin 247) – In 2023, only 23 public offers have been identified and declared compliant, according to the public offers observatory published by EY. However, the median premium offered on the last stock price turned out to be higher, reaching a 10-year record, above 40%.

Like IPOs, public offerings very clearly marked time last year on the Paris Stock Exchange.

Last year, only 23 public offers were identified and declared for companies listed on the Paris Stock Exchange, which constitutes an unprecedented low point since 2018 (22). This number is down significantly compared to the 32 operations in 2022 and above all, it is almost half as many as in 2021 (43) which then constituted a record year in this area for 5 years in terms of number of operations. “The year 2023 is therefore a slow year,” summarizes EY.

To make its count, the firm bases itself on the number of offers having received the approval of the Financial Markets Authority (AMF) in this study, which is in its 15th annual edition*.

“Faced with the rise in interest rates during 2023, and in a context of economic and geopolitical uncertainties, the number of public offerings has decreased significantly compared to 2022. The market continued its downward trend compared to the 32 operations recorded in 2022 and the 43 public offers recorded in 2021″, explain the experts from the EY firm.

During 2023, offers were mainly concentrated in the second half of the year, with 30% of visas granted by the AMF in the 3rd quarter and 30% of visas also in the last three months of 2023.

Small operations

The total value of shares acquired during 2023 amounted to €9.4 billion, according to EY. An amount which marks a sharp drop of 39% compared to 2022 (15.6 billion euros). It also includes operations declared compliant in 2022, but finalized in 2023 (Theradiag, Altur Investissement, Atari and EDF).

The State’s offer for EDF also represents 68% of the total value of shares acquired during public offers, or 6.5 billion euros (excluding the repurchases of Oceane and hybrid bonds) . Without this large-scale operation, the results would be less flattering with an amount which would have fallen to only 3 billion euros.

In detail, the operations for the year 2023 excluding EDF, were of limited size, notes EY, since no operation exceeded one billion euros. The two most significant operations of the year are the public offer launched by Concordia, holding company of the Rothschild family (in concert with other investors), on the bank Rothschild & Co for an amount of 688 million euros and the simplified public purchase offer of Bolloré SE for its own shares for a total amount of 570 million euros.

“The delisting of the family bank Rothschild & Co was motivated by the desire to maintain the independence of the group, benefiting in particular from historical allies. The Bolloré group has launched a share buyback which has the effect of strengthening the participation of the family holding company, Financière de l’Odet”, specifies EY.

The firm also recalls that the 2022 ranking was largely dominated by the operations of CNP Assurances and Albioma for which the amount of the acquisition amounted to 1.9 and 1.5 billion euros respectively.

A record median premium

The buyers were, however, more generous with the shareholders of their targets. The median premium compared to the last quoted price before announcement of the operation reached 42.9%, a high point observed for 10 years. This median premium on these same criteria reached 30.5% in 2022.

On the other hand, the median premium excluding extremes compared to the intrinsic value of the target companies calculated by independent experts, amounts to 9.1%, i.e. a level down 10 points compared to 2022 but in line with the average historic (11.5%), reports the firm.

In almost all cases, EY notes that the initiator of the offer is the reference shareholder of the company (or the company itself via a public share buyback offer), while 2 operations were by a third party company. Although in the majority, manufacturers were less active last year, since 60% of offers were launched by these players, a figure down significantly compared to 2021 (81%).

As in previous years, the technology sector (IT and biotech/medtech) remains in the majority, since targets in this sector represent around 35% of operations, compared to 31% in 2022, highlighting “the attraction for innovative companies , even in a complex economic context,” adds the study. This sector is on par with that of industries and materials which concentrated 35% of operations in 2023. And that is four times more than in 2022.

On the other hand, the finance sector is less animated by these operations. The share of public offerings in this universe contracts from 13% of transactions in 2022 to 9% in 2023. EY also notes that no transactions have been recorded in the luxury, consumer goods and energy. The firm also recalls that these public offers come from French players in 78% of cases.

A rating that is becoming increasingly poor…

In total, 31 companies were delisted from the Euronext Paris and Euronext Growth markets in 2023, i.e. 6 more exits than in 2022. EY took care to exclude the SPAC (an investment vehicle) from its sample. specially created for the purpose of acquisition) Transition Shares, which merged with the company Averne Group.

In detail, 14 companies were subject to delisting following a public offer, 12 of which followed offers initiated in 2023 and 2 following offers initiated in 2022 (EDF and Somfy). The public offers concern the following companies: Groupe Flo, Manutan International, UFF, Serma Group, CS Group, Vilmorin & Cie, Rothschild & Co, Biocorp, Evolis, Paragon ID, PCAS and Colas. Thus, a little more than 60% – 63% exactly – of public offers are subject to delisting, i.e. 12 operations out of the 19 operations launched in 2023 and finalized.

At the same time, 6 companies carried out a voluntary delisting, 2 companies were delisted following a merger and finally 9 were liquidated. Among these various delistings, EY includes the voluntary liquidation of 2 SPACs (Accor Acquisition Company and eureKING) having not completed their acquisition projects within the agreed time frame, specifies the EY study.

Like last year, the number of IPOs over the past year did not cover the 31 delistings, deplores EY. The Paris Stock Exchange recorded 6 new IPOs (with public offering). This is five fewer than in 2022, recalls the firm, which highlights the “caution shown by issuers in the face of persistent economic uncertainties”.

Highlight of this study, on the regulated compartment of Euronext Paris, it is quite simply a blank year. No operation with a public offer has been recorded since Lhyfe’s IPO in May 2022. The American cosmetics specialist Coty has in fact favored the professional compartment of Euronext to offer itself a double listing in Paris (in addition to the one in New York). All of the new entrants have thus taken their first stock market steps on Euronext Growth, the small and mid-cap compartment.

The net flow between entries and exits is therefore negative for the second consecutive year (-25). We have to go back to the year 2021 to have a trace of a positive net flow (+5), the numerous IPO operations (33) then acted as shock absorbers and compensated for the 28 departures from the Parisian stock market.

“The absence of any transaction on Euronext this year should be noted compared to the 6 transactions carried out on Euronext Growth, confirming the increased dynamism observed on this market since 2018,” notes EY. The firm also notes a growing appeal of listed companies with a moderate level of market capitalization for this compartment with lighter constraints compared to regulated markets. In 2023, the firm identified 11 transfers including 9 from Euronext to Euronext Growth and 1 from Euronext Access to Euronext Growth. In the latter case, the Airwell Group company wanted to put an end to its adventure on Euronext Access, – the least restrictive compartment in the Euronext galaxy – to move up to the next level in June 2023.

“The success of Euronext Growth should be underlined, with 10 out of 11 transfers intended for it reflecting the companies’ appetite for this market with less significant regulatory obligations”, concludes the firm which “hopes for a resumption of stock market operations in 2024”, on the basis for the good performance of the stock markets at the end of 2023.

*This study was carried out exclusively from documents published by the AMF and by the companies targeted by the operations. It only takes into account offers declared compliant by the AMF in 2023.