Believe successfully raises €300m in Paris IPO

Digital music heavyweights Believe has confirmed that it will begin trading shares on the French securities market after raising €300m ($473 million) through its Initial Public Offering (IPO).

The successful stock market launch will see the record label and music distributor listed on the Euronext Paris regulated market from today at 9am Paris time.

The company’s IPO offer price is €19.50 per share, with the company’s first 15,384,616 shares already being allocated to investors.

This share price indicates an overall market capitalisation of €1.9 billion before over-allotment, with Believe potentially raising up to €330m if its over-allotment option is fully exercised.

Notable shareholders in the IPO include TCV (41.67% capital and voting rights pre-over-allotment), Ventech (17.08%), XAnge (6.77%), GP BullHound (2.16%), Fonds Stratégique de Participations (3.21%) and Sycomore (2.14%), with the remainder being allocated to public float (14.35%) and Believe founder and CEO Denis Ladegaillerie (14.35%).

Ladegaillerie noted the significance of the IPO and welcomed the company’s new investors, saying that the label has reached “a new threshold in its development by going public”.

“This listing gives us the means to accelerate our development by fulfilling our mission to develop independent artists and labels in the digital world with respect, fairness and transparency,” Ladegaillerie said.

“I would like to thank our great teams, all of whom showed a great commitment in preparing our IPO and fulfilling our mission to serve artists and independent labels.”

Believe’s IPO plans were first made public last month when the distribution giant confirmed its plans to raise €500 million in a bid to fund new acquisitions and business expansion.

Its digital ventures include TuneCore, Believe Distribution Services, Nuclear Blast, Groove Attack, AllPoints and Naïve, with its Australian artist roster consisting of Allday, Northlane, Tora, Parcels and Cub Sport.