French media company Canal+ made its London market debut this week, marking the largest IPO in the UK fortwo years. The stock opened at 290p, but quickly slipped to 221p, giving the firm a £2.5 billion market valuation, far outside the FTSE 100. Since then, Canal+ shares have slumped further, down 26%—a disappointing start for a much-anticipated listing.
A Vote of Confidence?
Canal+ -home to hits like Paddington and Bridget Jones—was spun out of French billionaire Vincent Bolloré’s Vivendi empire, which still holds interests in Universal Music. Despite the sluggish debut, analysts suggest a longer-term valuation could reach £5 billion. Chancellor Rachel Reeves described the listing as a “vote of confidence” for London’s markets, but the immediate reception raises questions about investor sentiment.
Wider Pressure on London
The IPO comes at a critical time for London’s financial competitiveness. According to reports, the number of new listings this year is on track to hit a 15-year low. The UK has struggled to keep pace with international rivals like US, which are attracting higher-profile IPOs and greater investor interest.
The Road Ahead
Canal+’s muted debut underscores broader challenges for London’s stock market. As policymakers push to restore the city’s allure, the success—or failure—of listings like Canal+ will be closely watched as a bellwether for the UK’s ability to compete on the global stage.