Canal+ shares plunge on London Stock Exchange debut

Canal+ has suffered a disappointing debut on the London Stock Exchange with the French film production firm’s shares plummeting on their first day of trading.

The group, which is behind the blockbuster Paddington films, listed shares in London after investors voted to approve the break-up of its parent company Vivendi.

Monday’s listing of Canal+ shares had been hailed by Chancellor Rachel Reeves as a boost to the City after another year marked by weak IPO activity, companies opting for rival stock exchanges and private takeovers.

But Canal+, which had been hoping to raise up to £5billion, saw shares plummet nearly 16 per cent from an opening price of 290p to 244.2p approaching midday.

Vivendi other two spin-outs, communication firm Havas and book publisher Louis Hachette Group, have fared better on their respective debuts in Amsterdam and Paris.

Havas shares were up 6 per cent approaching midday, while Hachette rocketed more than 16 per cent.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted IPOs are ‘often hit with volatility during the first few hours, days and even weeks of trading’.

She added that Canal+’s listing ‘is still a boost for the City, especially given that the decision was made due to London’s appeal among international investors’.

Streeter said: ‘For London the listing of Canal+ is a bright spot in what’s been a slow year and marks the biggest listing since GSK spun out Haleon in 2022.

‘In terms of an IPO pipeline, 2025 does looks a little more encouraging. Interest rate cuts, with more eyed on the horizon will be helping with confidence,

‘The stability the new government has brought is also helping, after years of political uncertainty in the UK. But the US market, given its performance over the past year is still a tough act to follow.’

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