FDJ SHARES – After a very noticeable IPO, the FDJ share remains below the 22 euro mark. Find in our article all the information about La Française des Jeux.
[Mis à jour le 05 décembre 2019 à 10h32] The month of November was marked by the privatization and listing of La Française des Jeux on Euronext. More than 500,000 individuals have subscribed to FDJ shares. The first day of trading was marked by a sharp rise in the opening, the stock exceeding 23 euros per share during the very first minutes of trading. Ihe rise in FDJ shares is partly linked to priority given to small savers (Orders of less than 2,000 euros were served as a priority), to the detriment of institutional investors. Clearly, they could have come forward more to buy shares, so that demand was greater than supply. Another determining factor, a limited offer. Small savers are encouraged by the State to keep their shares (at least 18 months to acquire one for free after having acquired ten).
Since that first day on the stock market, FDJ shares have fallen back below the 22 euro mark, a price that is still high. In effect, lhe small savers may be tempted to sell their shares for pocket the added value, at the risk of losing the advantages promised by the State. As a sign of the interest shown in this operation, the company announced the release of a package of additional titles on Wednesday. The IPO of La Française des Jeux has become the largest transaction in France since Natixis in 2006.
On the eve of the FDJ’s IPO, the share price of La Française des Jeux was set at 19.90 euros for institutional investors and 19.50 euros for individuals by Bruno Le Maire. As a reminder, the latter benefit from a discount of 2% on the price. The purchase of ten shares, and their conservation for eighteen months, also makes it possible to acquire one for free. These incentive schemes are intended to bring small savers back to the stock market, when they had deserted it after the 2008 crisis.
This is the question asked by many small savers who have bought FDJ shares. Indeed, the FDJ title has certainly fallen compared to the first day of trading, but the price remains high. However, it is advisable to avoid the “stock market blow”: la Française des Jeux is considered a yield value. By choosing to sell, you risk losing the benefits granted by the State.
As the Boursorama site recently pointed out, it is advisable to set management objectives – upwards or downwards – when owning shares to see more in the long term, and not to panic as soon as the price is up or down. For example, you decide to sell a security only above a certain gain or loss.
Individuals cannot buy shares in La Française des Jeux as they see fit. It is imperative to have a stock savings plan (PEA) or a securities account. To do this, you must contact your usual banking contact. If you hesitate between these two products, know that with the securities account, you can acquire shares of European and foreign companies. The PEA does not allow this, but it has more attractive taxation. Once you have made your choice, you must place a purchase order with the following information:
- Direction of operation : procurement,
- Company Name : the French Games,
- Mnemonic code or ISIN : FR0013451333,
- The market on which the stock is listed : Euronext Paris – compartment A,
- The amount of shares you want to buy,
- Validity period of the order.
As mentioned earlier, the FDJ is often considered a yield value. It presents recurring dividends and its activity, focused on gambling, is slightly influenced by the economic situation. La Française des Jeux has several figures in its favour. The company boasts uborn average stake growth of “5% per year for 25 years” and bet on 16.9 billion euros in stakes in 2019, up 7% compared to last year.
“More than the share price, it is worth looking at the dividends“, had insisted Philippe Crevel, director of the Cercle de l’Epargne, with Linternaute.com.”The added value should be considered more as a bonus“.
The risks to which one is exposed by buying FDJ shares
As noted Income, the title of La Française des Jeux confirms for the time being its performance value profile, resisting the volatile nature of the stock market. Between November 21 and December 3, FDJ shares lost 0.80%, notes the magazine. Before investing, it is therefore advisable to look the timing and the stock price. As Boursorama reminded us, a downward movement is not necessarily the sign that you have to jump at the chance and acquire shares immediately. The reasons for a decline, and therefore the disaffection of investors, can be multiple. If you are new to the markets, therefore, be particularly careful and thoughtful.
In addition, La Française des Jeux will have to pay 380 million euros from the State to maintain its monopoly. The company will most certainly have to borrow, which will weigh on the bottom line and, in fine, on the title. There are also longer term risks. In the registration document (382 pages long and approved by the AMF) which you can consult here, la Française des Jeux lists a series of risks. In detail, the operator considers in particular that a evolution of the regulatory framework for example, could harm by “constraining its growth strategy” or “affecting [sa] ability to recruit new players”.
In this case, how to limit the capital risk? Experts recommend to diversify. Clearly, if you are getting started, it is advisable tobuy shares of other companies, in addition to those of the Française des Jeux. The Boursorama site recommends thata line does not exceed “20% within your portfolio”, but also not to concentrate your efforts on one and the same sector.
Also be wary of any information about the business that you have from a friend or relative. A “good tip” that encourages you to invest can be a insider trading. The latter is liable to a fine of up to 1.5 million euros and a prison sentence of two years. If the information in question is false, you expose yourself to a high risk of capital loss.
Through the privatization of La Française des Jeux, the State wishes to contribute to a fund dedicated to innovation and industry to the tune of “1.8 billion euros”, indicated the Minister of the Economy, Bruno Le Maire. As a reminder, this operation was recorded within the framework of the Pacte law. This law was definitively adopted by Parliament in April, thus allowing the transfer of the majority of the capital to the private sector.. As a reminder, the State nevertheless remains present in the capital of the company, up to 20%.
The privatization of La Française des Jeux could pay off up to 1.9 billion euros to the State, during the IPO scheduled for Thursday, November 21. After privatization, the state will continue to pocket tax revenue estimated at 3.5 billion euros per year. The dividend will de facto fall since the State’s participation in the capital will drop to 20%. For information, the State received 87 million euros for the 2018 financial year. CEO Stéphane Pallez indicated that the next dividend paid to all shareholders this year will be 122 million euros. “We will not make shareholders pay the costs of privatization,” she assured.