SMCP's stock market flotation fulfils expectations
On the morning of Friday 20th October, French fashion group Sandro, Maje, Claudie Pierlot (SMCP) received the green light for its listing on Paris' Euronext stock exchange. It was a positive start for SMCP: thanks to strong demand by French and foreign investors, the group was eventually able to price its IPO at €22 per share, consistent with the initial objective of €20-25 per share.
As a result, SMCP's market capitalisation reaches €1.7 billion, and the group's valuation is estimated at €2.01 billion, again consistent with expectations, making this the second largest flotation on Euronext in 2017. The IPO's global value is €541 million, and it could rise to €623 million should the over-allotment option be fully exercised.
Through the IPO, which until 23rd October takes the form of a share pledge, SMCP will complete a fund-raising round of €127 million in new shares, chiefly designed to reduce the group's financial debt. Adding the sale of the remaining stake held by US investment fund KKR (about 10%), of part of the stake held by the group's Chinese majority shareholder Shandong Ruyi, and of a smaller stake held by SMCP's directors, the free float will be equivalent to 33.1% of the capital.
As planned, the group's owner will hold a majority stake, in the region of 60.3% of the stock, while founders Evelyne Chétrite, Judith Milgrom and Ilan Chétrite, will hold just under 5% between them. As for SMCP's directors, including CEO Daniel Lalonde, they will altogether hold just under 2% of the stock.
"We are delighted with the success of SMCP's stock exchange listing," said Daniel Lalonde. “A new chapter in the group's prodigious growth story is starting today, heralding more of the same. The highly positive welcome we received is proof of how attractive our brands are, and of the confidence investors have in the development model and growth prospects of SMCP," added Lalonde.
Evelyne Chétrite, founder of Sandro, stated she is "very proud of the work done with my sister Judith, my son Ilan and the entire staff at SMCP, work which today has acquired new impetus thanks to the stock market flotation."
SMCP's extraordinary growth continues unabated, just ten years after the merger of the two founding sisters' labels, Sandro and Maje, and before they were joined by Claudie Pierlot. When the group was sold to L Capital and Florac in 2010, it was valued at €200 million, a figure which rose to €650 million when it was sold to KKR in 2013, then to €1.3 billion when it was sold to Shandong Ruyi in 2015, and reached €2 billion for its stock market flotation on 20th October 2017.
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