Close Menu
  • English
  • Featured
    • AI & Robotics
    • Energy
    • Finance
    • Leisure
    • Science
    • Security
    • Sustainable Development
    • Tech
    • Transport
  • About Us
  • Advertising
  • Contact Us

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

Illustration of the cosmic phenomenon of false vacuum decay and its potential impact on the universe (AI-generated, unrealistic). Credit: Ideogram.
“Universe Could Implode Instantly”: False Vacuum Theory Suggests Reality Itself Is Balancing on a Terrifying Quantum Edge
Illustration of early humans crafting bone tools 1.5 million years ago (AI-generated, unrealistic). Credit: Ideogram.
This Discovery Changes Human History: Ancient Tools From 1.5 Million Years Ago Reveal Astonishing Intelligence of Early Homo Species
Illustration of time reflections in a metamaterial setup reversing electromagnetic waves (AI-generated, unrealistic). Credit: Ideogram.
“Time Reflections Are Real”: Scientists Unveil These Mind-Bending Phenomena That Could Change Our Understanding of Reality Forever
Facebook X (Twitter) LinkedIn RSS
Rude Baguette
Facebook X (Twitter) RSS
Newsletter
  • Featured
  • AI
    Illustration of Chris Pelkey delivering a victim impact statement in court (AI-generated, unrealistic). Credit: Ideogram.

    “Dead Man Speaks in Court”: AI Clone of Murder Victim Confronts Killer Face-to-Face in Chilling U.S. Legal First

    May 14, 2025 at 7:10 AM
    Illustration of humanoid robots competing in sports events in Beijing (AI-generated, unrealistic). Credit: Ideogram.

    Beijing Launches World’s First Humanoid Robot Sports Games as Machines Compete for Glory in Jaw-Dropping Showdown

    May 13, 2025 at 9:02 AM
    Illustration of the Amphibious Robotic Dog inspired by natural dog movements (AI-generated, unrealistic). Credit: Ideogram.

    “This Robot Dog Swims and Sprints”: Nature-Inspired Machine Conquers Land and Water With Jaw-Dropping Agility

    May 13, 2025 at 8:05 AM
    Illustration of BabyBot mimicking infant feeding behaviors (AI-generated, unrealistic). Credit: Ideogram.

    “This Robot Feeds Like a Baby”: Meet BabyBot, the Soft Marvel Revolutionizing Infant Feeding Research with Astonishing Precision and Unmatched Expertise

    May 11, 2025 at 3:51 PM
    Illustration of a tiny, shape-shifting microrobot navigating complex terrains (AI-generated, unrealistic). Credit: Ideogram.

    “China’s Flying Lego Bot Is Real”: Miniature Microrobot Now Soars and Drives to Conquer Earth’s Harshest Terrain

    May 11, 2025 at 5:57 AM
  • Energy
    Illustration of the Three Gorges Dam in China and its potential impact on Earth's rotation (AI-generated, unrealistic). Credit: Ideogram.

    “China Disrupts Earth’s Rotation”: NASA Confirms Planet-Slowing Project With Shocking Global Effects Already Underway

    May 13, 2025 at 3:51 PM
    Illustration of Alpha Ring's Fusion AI Data Centre connecting global fusion research labs (AI-generated, unrealistic). Credit: Ideogram.

    “Fusion Labs Now Linked”: US Builds Super Device to Unite Global Reactor Tests and Accelerate Nuclear Breakthroughs

    May 11, 2025 at 7:08 AM
    Illustration of the breakthrough in fusion energy development, highlighting the resolution of magnetic containment flaws (AI-generated, unrealistic). Credit: Ideogram.

    “Scientists Finally Break the Fusion Barrier”: US Team Fixes 70-Year Energy Flaw in Stunning Scientific Breakthrough

    May 8, 2025 at 4:58 PM
    Illustration of researchers observing restricted heat flow in high-energy-density plasma using lasers (AI-generated, unrealistic). Credit: Ideogram.

    This Super-Hot Plasma Test Just Changed Everything: US Fires Up 180,000°F Fusion Blast in Monumental Scientific Milestone

    May 7, 2025 at 4:58 PM
    Illustration of bacteria generating electricity as a symbol of biobattery (AI-generated, non-realistic illustration). Credit: Ideogram.

    “These Bacteria Spit Electricity”: A Groundbreaking Discovery Set to Ignite a Massive Green Energy Revolution across the United States

    May 5, 2025 at 4:03 PM
  • Finance
    Illustration of Visa's integration of AI systems into digital payments (AI-generated, non-realistic illustration). Credit: Ideogram.

    Visa’s AI Is Now Shopping for You: This Robot May Soon Swipe Your Card Automatically—and Mess With Your Mind

    May 4, 2025 at 8:07 AM
    Microsoft Strikes Unprecedented Deal: World's Largest CO2 Removal at 7.44 Million Tons, Setting New Environmental Milestone

    “Microsoft Strikes Historic Climate Deal”: World’s Largest CO2 Removal Pact Targets 6.75 Million Tons in Unmatched Green Push

    April 19, 2025 at 9:55 AM
    RLWRLD Stuns Tech World With $15.6 Million Fundraise to Revolutionize Robotics: Unleashing Unprecedented Innovations That Will Shock the Industry

    “Robots Just Got Smarter”: RLWRLD Raises $14.8 Million to Build Groundbreaking Foundational AI Model for the Future of Robotics

    April 17, 2025 at 6:47 AM
    Marshmallow's Meteoric Rise: British Migrant Insurance Startup Secures $90 Million, Surges Past $2 Billion Valuation in Unprecedented Move

    “Built for Outsiders, Backed by Billions”: UK’s Marshmallow Raises $90 Million as Migrant-Focused Insurtech Soars Past $2 Billion Valuation

    April 17, 2025 at 6:02 AM
    Why the tech industry needs a labor/union movement

    Why the tech industry needs a labor/union movement

    October 2, 2022 at 3:39 PM
  • Leisure
    Illustration of Mark Zuckerberg's luxury superyachts journey to Norway's fjords for a heliskiing adventure (AI-generated, unrealistic). Credit: Ideogram.

    “Even the U.S. Is Shocked”: Zuckerberg’s 5,300-Mile Yacht Voyage and Helicopter Ski Drop Redefine Billionaire Excess

    May 13, 2025 at 9:49 AM
    Illustration of the delayed release announcement for Grand Theft Auto VI by Rockstar Games (AI-generated, unrealistic). Credit: Ideogram.

    Total Shock for Gamers Worldwide: GTA VI Now Postponed to 2026 After Rockstar Vows to Redefine the Entire Franchise

    May 7, 2025 at 5:49 AM
    Illustration of the delayed release of GTA VI and its implications for the gaming industry (AI-generated, unrealistic). Credit: Ideogram.

    “Red Dead Proves the Wait Is Worth It”: Rockstar’s Masterpiece Shows Why GTA 6 Delay Could Deliver Gaming’s Next Big Legend

    May 6, 2025 at 4:47 PM
    Illustration of HBO's adaptation of The Last of Us exploring character depth and emotional storytelling (AI-generated, unrealistic). Credit: Ideogram.

    The Last of Us Reinvented: Season 2 Takes Bold Step Beyond the Game’s Limits in Stunning, Unforgettable Storytelling Move

    May 6, 2025 at 12:14 PM
    Illustration of the highly anticipated PlayStation 6 console with advanced features and technologies (AI-generated, unrealistic). Credit: Ideogram.

    “PlayStation 6 Is Coming Fast”: Sony’s Next Console May Launch Much Sooner Than Anyone Predicted, Shocking the Gaming World

    May 6, 2025 at 10:03 AM
  • Science
    Illustration of the cosmic phenomenon of false vacuum decay and its potential impact on the universe (AI-generated, unrealistic). Credit: Ideogram.

    “Universe Could Implode Instantly”: False Vacuum Theory Suggests Reality Itself Is Balancing on a Terrifying Quantum Edge

    May 14, 2025 at 12:14 PM
    Illustration of early humans crafting bone tools 1.5 million years ago (AI-generated, unrealistic). Credit: Ideogram.

    This Discovery Changes Human History: Ancient Tools From 1.5 Million Years Ago Reveal Astonishing Intelligence of Early Homo Species

    May 14, 2025 at 10:08 AM
    Illustration of time reflections in a metamaterial setup reversing electromagnetic waves (AI-generated, unrealistic). Credit: Ideogram.

    “Time Reflections Are Real”: Scientists Unveil These Mind-Bending Phenomena That Could Change Our Understanding of Reality Forever

    May 14, 2025 at 8:49 AM
    Illustration of a cat with the newly discovered salmiak coat color, transitioning from black to white (AI-generated, unrealistic). Credit: Ideogram.

    “This New Cat Color Is a Genetic Miracle”: Scientists Astounded as Feline Defies All Known Genetic Rules in Stunning Discovery

    May 14, 2025 at 7:49 AM
    Illustration of the extinct Epicyon, the largest prehistoric canid, showcasing its formidable bone-crushing jaws (AI-generated, unrealistic). Credit: Ideogram.

    “He’s Back From Extinction”: The Giant Epicyon With Bone-Crushing Jaws Is Roaming Again—and Scientists Are Stunned

    May 13, 2025 at 4:50 PM
  • Security
    Illustration of the BlueWhale System, an advanced autonomous underwater vehicle designed for naval warfare, equipped with sophisticated sensors (AI-generated, unrealistic). Credit: Ideogram.

    “Unstoppable Sea Phantom”: This 40-Foot Drone Submarine Dominates Ocean Warfare, Packed with Massive Combat-Ready Payloads for Ultimate Naval Supremacy

    May 11, 2025 at 5:04 PM
    Illustration of the FP-1 long-range drone being unveiled during Ukraine's Infantry Day celebrations (AI-generated, unrealistic). Credit: Ideogram.

    Ukraine Unleashes Game-Changing 1,000-Mile Drone: This Aerial Beast Hauls 265-Pound Explosive Payload, Shattering Boundaries of Modern Warfare

    May 11, 2025 at 11:47 AM
    Illustration of Recce360 Deep Inspection Camera operating in a high-security, nuclear environment (AI-generated, unrealistic). Credit: Ideogram.

    “Indestructible Spy Bot Deployed”: US Unveils First-Ever Nuke-Proof Robot to Guard Missile Silos With Unstoppable Surveillance

    May 11, 2025 at 8:07 AM
    Illustration of the "White Emperor" fighter mockup showcased at the 2024 Zhuhai Airshow (AI-generated, unrealistic). Credit: Ideogram.

    “China’s White Emperor Breaks the Rules”: Stunning New Fighter Jet Could Redefine Air Superiority and Shock Global Militaries

    May 10, 2025 at 3:56 PM
    Illustration of Latvia's autonomous kamikaze drone, BLAZE, engaging enemy UAVs (AI-generated, unrealistic). Credit: Ideogram.

    This Latvian Drone Has Russia Stunned: Under-60-Second Strikes Ignite Panic in Kremlin Defense Circles

    May 9, 2025 at 4:46 PM
  • Impact
    Illustration of Iceland's successful implementation of a four-day workweek and its impact on productivity and well-being (AI-generated, unrealistic). Credit: Ideogram.

    “Gen Z Was Right All Along”: Iceland’s 4-Day Workweek Proves a Massive Success Five Years After Bold National Shift

    May 12, 2025 at 7:54 AM
    Illustration of the majestic Jeddah Tower under construction, symbolizing architectural innovation and cultural preservation (AI-generated, unrealistic). Credit: Ideogram.

    “Saudi Arabia Unleashes Construction Fury”: This Mind-Blowing 3,280-Foot Jeddah Tower Set to Shatter Global Records and Redefine Skyscraper History

    May 6, 2025 at 3:59 PM
    Illustration of the ambitious Neom project and The Line skyscrapers amidst the Saudi Arabian desert (AI-generated, unrealistic). Credit: Ideogram.

    “Unprecedented Crisis Looms”: This Massive $500 Billion Construction Site Faces Catastrophic Delays as 10,000 Workers Sound the Alarm

    May 6, 2025 at 7:08 AM
    Illustration of revolutionary nickel extraction using hydrogen plasma to reduce emissions (AI-generated, non-realistic illustration). Credit: Ideogram.

    “Green Battery Revolution Begins”: New Nickel Extraction Cuts Emissions by 84% and Could Transform the Entire EV Industry

    May 4, 2025 at 6:53 AM
    Illustration of global freshwater distribution and geopolitical challenges (AI-generated, non-realistic illustration). Credit: Ideogram.

    This Map of Earth’s Remaining Freshwater Reserves Exposes the Alarming Truth Behind the Coming Global Water Crisis

    April 29, 2025 at 4:53 PM
  • Tech
    Illustration of a person sporting a Continuous Glucose Monitor to detect early diabetes signs (AI-generated, unrealistic). Credit: Ideogram.

    “This Wearable Sees Diabetes Coming”: New CGM Tech Detects Early Warning Signs With Unmatched Accuracy, Study Confirms

    May 13, 2025 at 7:07 AM
    Illustration of the Millennium M2000 Supercomputer revolutionizing AI-driven industries (AI-generated, unrealistic). Credit: Ideogram.

    “This $2M Beast Obliterates Slow Science”: Millennium M2000 Supercomputer Is Smashing Research Speeds Worldwide

    May 13, 2025 at 6:13 AM
    Illustration of Jensen Huang, CEO of NVIDIA, leading the list of intellectually astute American CEOs based on linguistic analysis (AI-generated, unrealistic). Credit: Ideogram.

    “Elon Musk Made the List”: Linguistic Analysis Reveals the Smartest U.S. CEOs—and Some Names Will Truly Shock You

    May 12, 2025 at 12:13 PM
    Illustration of global leaders in research and development intensity with Israel at the forefront (AI-generated, unrealistic). Credit: Ideogram.

    Not China, Not the U.S.: This Unexpected Country Now Leads the World in Research and Development Spending

    May 12, 2025 at 10:02 AM
    Illustration of a programmer discovering fraudulent USB drives purchased from Amazon and developing a tool for data protection (AI-generated, unrealistic). Credit: Ideogram.

    “All 12 Were Fakes”: After Buying Dozens of Fraudulent USB Drives on Amazon, This Man Released a Free Detection Tool

    May 12, 2025 at 9:10 AM
  • Transport
    Illustration of the Streetwing flying car showcasing its innovative design and dual-functionality (AI-generated, unrealistic). Credit: Ideogram.

    This Flying Car Isn’t for Commuting: The Streetwing Is Designed Solely to Explore the Sky Like Nothing Ever Seen Before

    May 14, 2025 at 6:11 AM
    Illustration of Airbus's innovative foldable wing technology for enhanced aviation efficiency (AI-generated, unrealistic). Credit: Ideogram.

    Airbus Shocks the Aviation World With a Jet Whose Folding Wings Dramatically Cut Fuel Burn and Boost Efficiency

    May 12, 2025 at 5:11 PM
    Illustration of a Tesla Cybertruck sitting idle in a parking lot (AI-generated, unrealistic). Credit: Ideogram.

    “Rotting on a Lot for Months”: This Shocking Tesla Discovery Left a U.S. Buyer Completely Stunned at Delivery

    May 12, 2025 at 6:58 AM
    Illustration of the Bugatti Bolide hypercar showcasing its extraordinary speed and performance on the Nürburgring track (AI-generated, unrealistic). Credit: Ideogram.

    Bugatti’s New Monster Hits 186 MPH and Leaves McLaren and Porsche in the Dust With Record-Shattering Acceleration

    May 11, 2025 at 10:14 AM
    Illustration of the Astute-class submarine showcasing its advanced stealth features and propulsion system (AI-generated, unrealistic). Credit: Ideogram.

    This Submarine Moves Like a Dolphin: Astute-Class Redefines Stealth Warfare With Silent Navigation and Lethal Efficiency

    May 10, 2025 at 5:14 PM
  • English
Rude Baguette

Rude VC: To IPO or not to IPO? – Going public in France

Eirwen WilliamsBy Eirwen WilliamsMay 29, 2012 at 6:34 AM05 Mins Read
Share Twitter Facebook LinkedIn Telegram WhatsApp Email Copy Link
Follow Us
Google News
Share
Twitter Facebook LinkedIn WhatsApp Email Copy Link

Forgive the bastardization of Shakespeare’s Hamlet, because when it comes to French tech IPO’s, one could argue that MacBeth is more appropriate (“Double, double, toil and trouble. Fire burn and cauldron bubble…”).

In my last two columns we reviewed the basics of IPO’s and examined some of the challenges that venture-backed companies like Facebook confront in going public in the U.S. In today’s third installment of the series, we’ll focus on the ramifications of going public for venture-backed tech companies in France specifically.

A French tech company that is planning to go public has one main group of exchanges to consider for its IPO in Paris: the Euronext (now NYSE-Euronext following its sale to the NYSE in 2007), actually encompasses three distinct exchanges: the Euronext, the Alternext, and the Marché Libre. Although it is not impossible for a French company to go public on some other European exchanges, such as the Scandinavian OMX or the London AIM, the contortions involved make this very unusual. Of course, any French company can shift its headquarters to another geography and go public there (such as Business Objects did on the Nasdaq), or even pursue a dual listing (which Business Objects also later did), but such a move requires the company to achieve substantial scale before becoming worthwhile.

Of the NYSE-Euronext group in Paris, the Euronext is the dominant exchange. This is where all CAC40 companies are listed, among 635 other mid and large cap firms. Due to the size threshholds and extent of compliance obligations, it is unusual for tech companies with market caps below 100M€ to go public on this exchange. Accordingly, the most commonly viable IPO options for French tech firms are either the Alternext or the Marché Libre.

What a fricking joke

Let’s start with the Marché Libre. In my undoubtedly controversial opinion, and to quote Aravand Adiga’s protagonist in The White Tiger, the Marché Libre is a fricking joke. It offers, in my opinion, all of the drawbacks of the Alternext, almost none of the Alternext’s benefits, and a few disadvantages of its own. Perhaps the most salient drawback is its sleazy connotation. Think of the dreaded ‘Pink Sheets’ in the U.S. where penny stocks, shell companies, and firms of dubious nature lurk. Don’t get me wrong: I’m not suggesting that the 250 companies currently trading on the Marché Libre are illegitimate. It’s just that given the extremely light regulatory requirements, a few bad apples, and nominal liquidity, most professionals don’t take the Marché Libre companies seriously. Even the relatively good ones are subject to a valuation discount due to their ‘location’. The analogy might be that of a decent residential home which is current on all mortgage payments but has the misfortune of being located in a neighborhood of foreclosures.

Surely there’s a viable alternative ?

There is: the Alternext. French tech companies consider the Paris Alternext as a natural first choice when planning an IPO. There can be advantages to going public for tech firms, and the Alternext sometimes delivers.

Let’s recap the principal reasons for going public:

  1. Raising cash
  2. Attaining prestige, credibility
  3. Attracting and retaining key employees
  4. Establishing a ‘currency’ of stock to facilitate future acquisitions
  5. Providing a liquid return to investors and employees

On the first two points, the Alternext can deliver, at least up to a point. Raising money is certainly feasible on the Alternext, and even though France doesn’t have a strong culture of individuals playing the stock market, there is a handful of institutional money and tax-advantaged fund vehicles which are commissioned to invest in Alternext issues. And thanks to its modest regulation and respectable collection of 175 listed firms, a company that is public on the Alternext can inspire a degree of integrity and stability (the Marché Libre gives the opposite effect here).

Size (volume) matters

On points 3 ~ 5, however, I submit that even the Alternext falls short. The crux of the problem is lack of volume. Lack of volume, i.e. limited trading transactions on a given company’s shares, can be devastating to a small company. For one thing, it makes it difficult for insiders to sell the stock. Unlike when a small fry like me sells 100 shares of a high-volume stock like Microsoft and nobody notices, a sell order of even a modest size on a stock with low trading volume pushes the share price down disproportionately.

And on the Alternext, trading volumes are miniscule. Only 15 companies on the Alternext surpassed € 1 million worth of trading in a month. For comparison purposes, Microsoft exceeds $1 billion worth of trades every single day.

An even more pernicious effect of low volumes is related to the notion of market efficiency. Market efficiency, when a stock price fully reflects all publicly available information on a company, requires a high volume of buyers and sellers in order to work properly. When trading volume on a stock is low, the stock price is less likely to reflect the true (or intrinsic) value of the company. This means that a public company with low trading volumes will often be penalized with a liquidity discount and a valuation that is far lower than the fundamentals of the business would justify. I can think of several examples on the Alternext today of solid companies for whom this liquidity discount is severely punishing.

A low stock price, especially one that is artificially low, will be useless as a currency for acquisitions. In addition to demoralizing employees, a low stock price will also bias any future takeover discussions with would-be suitors. Think about it: a tech company with a strong position in France or Europe may represent an attractive acquisition target by a large American and Asian acquirer. As long as the company is private, it can pitch an elaborate and promising equity story about its prospects and future value. When the company is public however, the potential acquirer is going to use the company’s low market valuation as an anchor for any M&A negotiations.

Did you like it? 4.6/5 (28)

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

alternext euronext exit IPO liquidity
Follow on Google News Follow on X (Twitter)
Share. Facebook Twitter LinkedIn Telegram WhatsApp Email Copy Link
Previous ArticleRails Girls comes to Paris to teach Girls to code in Ruby
Next Article Here are the Six Open Data Winners of Etalab's Dataconnexions Contest
Related Posts
Illustration of Visa's integration of AI systems into digital payments (AI-generated, non-realistic illustration). Credit: Ideogram.

Visa’s AI Is Now Shopping for You: This Robot May Soon Swipe Your Card Automatically—and Mess With Your Mind

Microsoft Strikes Unprecedented Deal: World's Largest CO2 Removal at 7.44 Million Tons, Setting New Environmental Milestone

“Microsoft Strikes Historic Climate Deal”: World’s Largest CO2 Removal Pact Targets 6.75 Million Tons in Unmatched Green Push

RLWRLD Stuns Tech World With $15.6 Million Fundraise to Revolutionize Robotics: Unleashing Unprecedented Innovations That Will Shock the Industry

“Robots Just Got Smarter”: RLWRLD Raises $14.8 Million to Build Groundbreaking Foundational AI Model for the Future of Robotics

Add A Comment
Leave A Reply Cancel Reply

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

Illustration of the cosmic phenomenon of false vacuum decay and its potential impact on the universe (AI-generated, unrealistic). Credit: Ideogram.
“Universe Could Implode Instantly”: False Vacuum Theory Suggests Reality Itself Is Balancing on a Terrifying Quantum Edge
Illustration of early humans crafting bone tools 1.5 million years ago (AI-generated, unrealistic). Credit: Ideogram.
This Discovery Changes Human History: Ancient Tools From 1.5 Million Years Ago Reveal Astonishing Intelligence of Early Homo Species
Illustration of time reflections in a metamaterial setup reversing electromagnetic waves (AI-generated, unrealistic). Credit: Ideogram.
“Time Reflections Are Real”: Scientists Unveil These Mind-Bending Phenomena That Could Change Our Understanding of Reality Forever
News by category
  • English
  • Tech
  • Finance
  • Leisure
  • Transport
  • Science
  • Security
  • AI & Robotics
  • Energy
  • Sustainable Development
Information
  • Meet the Team
  • Legal notice
  • Privacy policy
  • About Us
  • Advertising
  • Contact Us
  • About Us
  • Advertising
  • Contact Us

Subscribe to News

Subscribe to our weekly newsletter to receive the very best articles of the moment, handpicked and delivered straight to your inbox.

Facebook X (Twitter) RSS
© RudeBaguette.com. All rights reserved.

Type above and press Enter to search. Press Esc to cancel.