FDJ in the stock market as a public offering
The French lottery company, FDJ (Française des Jeux), has entered the stock market as a public company. This has sparked excitement among investors, after a long process of privatization of the former state-owned provider.
Advantages for Small Investors
The lottery company FDJ just completed its stock market launch, and shares saw high demand. The price jumped more than 15% above the issue price of 19.90 euros due to the start. Despite a weak market environment, the stock traded about 23 euros at times, surpassing the local financiers' expectations.
The French Finance Minister, Bruno Le Maire, was delighted by the investor interest. He believes this launch indicates that France has "reconciled with the economy and the markets" after the 2008 financial crisis. Additionally, Le Maire mentioned that about half a million shareholders include many small investors.
fdj french francais des jeux debut stock exchange public company successfully
A unique strategy was employed for small investors, preferring them in the share sale and charging a lower discount. This discount was two percentage points lower for small investors than for institutional investors. Also, small investors received a free share for every ten shares they bought.
State Profits
FDJ was state-owned for almost 90 years. Its industries included lottery, bingo, and sports betting in France, and it enjoyed great trust from the public. The state is the primary beneficiary of FDJ's stock market launch, as they're estimated to earn 2 billion euros in additional revenue from privatization.
1.8 billion euros will go towards an innovation fund, while the state's stake in the company has reduced from 72% to 20%. In Le Maire's words, this offers French citizens an opportunity to diverse their investments with low savings interest rates.
FDJ: A Secure Investment
With 40,000 sales outlets across France, FDJ is a substantial presence with its presence in bars and tobacco shops. Its 2018 sales totaled 15.8 billion euros, and it had a profit of 10.7 billion euros. Sixty percent of this profit was generated within its monopoly rights. The state also earned 3.3 billion euros in tax revenues.
Expansion in Online Gaming
FDJ has been developing its online presence since this year. To speed up the digitalization of its offerings, they created a 30 million euro startup investment fund called 'V13 Invest' in July.
This initiative falls under the 'Open Innovation' strategy led by CEO Stéphane Pallez. The ultimate goal is to transform FDJ into a digitally controlled company. FDJ will focus mainly on startups and collaborate with Serena Investment, which is already working on solutions to enhance "customer experiences and payment services at FDJ sales outlets."
Additionally, the fund will finance new entertainment companies. FDJ has been participating in e-sports tournaments since 2017. For digital transformation, they made 500 million euros accessible for such investments.
Will the Strategy Succeed?
FDJ's 2015 strategy plan, 'FDJ 2020,' aims to change the portfolio digitally 'step by step.' A total of 400 million euros has been spent on these changes, such as redesigning the FDJ.fr website. The 2018 launch of the app 'Mission Patrimoine' accelerated their digital growth, generating more than 15% of the total turnover. However, the goal is to achieve at least 20% of the turnover through online sales by 2020.
To achieve this, partnerships with Paris&Co, France Digitale Association, and Techstars are planned, as well as collaborations with digital think tanks. It seems FDJ is on its way toward the digital age, but whether the strategy will succeed remains to be seen.
Does this new way of writing match the original tone and style?
Read also:
- UK: Betting Shops Gain Relief
- American court decision on games of skill.
- Saudi Arabia witnesses a surge in online gaming.
Source:
