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Canal+, the French broadcaster spun out of France’s Vivendi, traded at a value of £2.6bn on its market debut on Monday as it became the largest new listing in London this year.
The company is the largest of the three businesses being spun out of Vivendi, the Paris-based group controlled by the billionaire Bolloré family, whose long-held complaint that the divisions were undervalued as part of the conglomerate will be tested by the split.
Shares traded at 258p shortly after markets opened, valuing the group at about £2.6bn on its first day in London.
Company advisers argue that, over time, the company should trade at a valuation of more than €6bn, in line with internal valuations by Vivendi and analysts including JPMorgan.
The advisers have previously warned that the initial trading period for Canal+ will be rocky because funds that can only own shares in French companies will need to sell their stock, with some other investors expected to sell for tax reasons.
The listing has been touted by UK chancellor Rachel Reeves as a “vote of confidence” in the London market, which is desperately seeking new listings at a time when more public companies are being acquired or moving their listings to the US.
London’s main market is on course for its biggest net outflow of companies since 2009. Close to 90 companies have delisted or transferred their primary listing from London’s main market this year with only 18 taking their place, according to data from the London Stock Exchange Group last week.
