Can the Canal+ IPO save the London Stock Exchange (LSE)?

Canal+, the French television and film group, is coming to the London Stock Exchange (LSE) before the end of the year. The firm received overwhelming shareholder approval yesterday for Vivendi’s Canal+ spin-off. This is not surprising given that Canal+ is hoping to fetch a valuation of approximately £7 billion. The listing could help spark the start of a comeback for new listings in the city after a very quiet few years. There have been just over a dozen primary listings in London this year, according to data compiled by MKP Advisors, the largest being Raspberry Pi at about £540 million. But it’s difficult to recall the last time a major French company crossed the Channel to list in London. 

Canal+ is not just any French company. For the French, it carries deep cultural significance. Canal+ has played a key role in shaping French society, culture, politics, and economics. Its presence has significantly influenced French cinema, the televising and profile of top-level sports in France, and launched the careers of numerous up-and-coming comedians and presenters. Perhaps more significant than its role in fostering innovation across cultural fields, Canal+ has arguably been a touchstone of France’s cultural, social, and economic modernisation since the 1980s. Over the last three decades, the channel has been a driving force for change in television and culture, exemplifying private-sector innovation as France grappled with globalised competition and the need to reimagine the relationships between state, culture, the private and public sectors, and workers. In simple terms, for those born in 1980s France, having a Canal+ subscription meant access to all the ‘must-have’ content of the time. 

Historically, Canal+ was never known as an international business, although one-third of its subscribers were based outside Metropolitan France. The decision to list in London, therefore, makes absolute sense. Canal+ has been entirely reliant on the French-speaking market for its revenues, profits, and intellectual property. To ensure its future relevance, the company needs to explore growth opportunities, and the path forward involves Anglo-Saxon investors, content, and partnerships. Its bet on the Paddington movies, produced by StudioCanal, is one such example of its efforts to connect with international markets. 

Whatever one might think of the business, the valuation, or Vivendi, the key aspect of this potential IPO- assuming it is successful0- is that it could be one of the biggest listings of 2024. It has the potential to significantly boost the LSE’s recent fortunes, as the exchange has lost much of its sparkle to Nasdaq. Nasdaq’s appeal stems from a wider range of investors, a deeper capital pool, and more accommodating regulations, particularly for tech companies. As such, Canal+’s choice to list on the LSE is expected to bolster investor confidence and could encourage other companies to follow suit in 2025.