France secures first IPO of 2012
Logo of French chip maker Inside Secure.
French chip maker Inside Secure cracked open the European IPO market today with the launch of bookbuilding for its up to €79.3m Euronext Paris listing. The company completed pre-marketing in June 2011 but decided against proceeding in a difficult market.
This time around, joint bookrunners BNP Paribas and Natixis – Natixis has replaced Jefferies since the last attempt – began pre-marketing with top-priority accounts and encouraged by the response then broadened out to a full pre-marketing process.
Tuesday morning saw the launch of bookbuilding for a base deal of €60m, plus a €9m extension option and 15% greenshoe.
The deal is certain to receive attention out of proportion to its modest size – in part because it is the first marketed IPO of 2012 – RusPetro had a one-day bookbuild following private pre-sounding. But it will also grab attention because it offers the characteristics that excite investors in IPOs: it is all primary, it represents a new sector for investors and the company is at an early stage. The firm expects to break-even by the end of this year.
While Inside Secure is breaking new ground in terms of re-opening the IPO market proper, leads are confident that the deal has the necessary traction with key accounts to get done. Technology and mid-cap specialists are the main targets, with the former boosted by selling into the US under 144a. The near-field communication space is new but consumers are already familiar with it through pass cards to enter buildings, paying for coffee and, in London, the Oyster card they use on public transport.
Shares are offered at €7–€8.54 per share and proceeds are fixed at €60m on the base deal. An extension option could add €9m and the greenshoe will be a further 15%. The price range gives the company a pre-money equity valuation of €162.2m–€197.9m.
Bookbuilding closes for retail on February 16 and at midday on February 17 for institutions. Pricing will be later the same day, before trading on February 20. The slightly shorter than two-week bookbuild means pricing comes ahead of school holidays on February 18.
