Wednesday - Jul 26, 2017

Euronext expected to be valued at around $2.4 Billion in its forthcoming IPO


Euronext expected to be valued at around $2.4 Billion in its forthcoming IPO

Leading global network of exchanges and clearing houses Intercontinental Exchange (ICE), have announced their plans for the proposed IPO for their Euronext division at the end of May, have now taken the lid off their share price expectations, which could see the company valued at a maximum of 1.75 billion euros, or $2.38 billion.

Euronext, which operates across all of the leading stock exchanges on the European mainland, initially plans completing a share pricing by the 19th of June, with shares going on sale on the Paris, Amsterdam and Brussels stock exchanges the following day. Euronext, have also plans to list on the Lisbon stock exchange towards the end of this year.

A spokesperson for ICE announced that the company plans to price the Euronext offering somewhere between between €19 and €25 a share, giving the company a maximum value up to €1.75 billion, if share prices meet the target.

According to Dominique Cerutti chief executive of Euronext, the company is well positioned to develop our markets across Europe, through optimising underexploited businesses as well as repositioning Euronext in a position to be the leading center for enlisting capital in mainland Europe.

The proposed public offering will signify a return to independence for Euronext, with the company being acquired by the New York Stock Exchange in 2007. Trading under the title of NYSE Euronext, attempts were made to expand the new company’s operations through amalgamating with Deutsche Börse, however that deal failed to get off the ground after being blocked by European antitrust regulators.

A few months after the deal fell through, Atlanta-based ICE acquired NYSE Euronext, paying around $8.2 billion in 2012, with the acquisition, receiving full approval from European regulators towards the end of 2013.

ICE originally were reported to be interested in either spinning off for selling Euronext, as they had reportedly set their sights on acquiring NYSE’s European derivatives division, trading under the title of Liffe. However the deal failed to transpire.

Particularly interested in seeing the Euronext flotation the maximum of its potential level will be a group of institutional investors amongst them Banco Espirito Santo and BNP Paribas, who acquired a 33 percent stake in Euronext just last month.

Also looking on anxiously will be the Euronext’s employees who are taking advantage of the opportunity to acquire shares in the company before flotation at a discounted price.

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