Not only is this is the first instance of a company conducting an IPO using crowdfunding, but Domaine Chanzy will also be the only French company listed on AIM and the only French wine specialist listed in London. Once listed on AIM, Domaine Chanzy’s unique ticker symbol will be ‘WINE’.
Shares in Domaine Chanzy will be eligible for Enterprise Investment Scheme (EIS) relief.
The IPO seeks to raise at least £1.9 million at a share price of 120p. Investors large and small will be able to invest from £10 up using the Seedrs platform.
The transaction is a significant step forward for equity crowdfunding in Europe and opens up the opportunity to participate in IPOs to a much wider range of investors. Those investors who use Seedrs to invest in the Domaine Chanzy IPO will have their shares held by Seedrs as nominee, meaning that they do not need to establish separate brokerage or trading accounts. Investors will be free to sell their shares on AIM at any time (provided that sufficient demand exists).
In addition to the shares they purchase, investors will be offered substantial discounts in Domaine Chanzy’s wines. Those investors who purchase a minimum a minimum of 1,000 shares (£1,200) will be entitled to discounts of up to 55% on wines ranging from Domaine Chanzy’s entry-level offerings to its premier Grand Cru.
In parallel with the Seedrs crowdfunding, Domaine Chanzy will also be raising funds for the IPO through a placing led by several City corporate finance firms. Investors in the crowdfunding and the placing will have demand satisfied on a first-come, first-served basis.
The money raised through the IPO will enable Domaine Chanzy to satisfy the ever-increasing demand for its award winning wines, in particular by developing the Group’s distribution networks and creating a new Burgundy wine brand targeted primarily at overseas consumers, as well as by meeting the Group’s working capital requirements.
Philippe Der Megreditchian, Chief Executive Officer of Domaine Chanzy, said: “We are delighted to launch our IPO in London and to partner with Seedrs to do so. Domaine Chanzy will be unique in being the only French wine specialist listed in London as well as the only French company listed on AIM. We have ambitions to be one of the top wine producers in Burgundy and this unique approach to listing on AIM via crowdfunding will enable us to reach a wide investor base and deliver on our strategy.”
Jeff Lynn, CEO and Co-Founder of Seedrs, said: “Seedrs is developing a reputation for achieving ‘firsts’ in the financial services industry for crowdfunding. Investors and companies trust us to provide a secure and transparent platform for their transactions, so it was a natural next step for us to work with Domaine Chanzy to enable this unique IPO. And with the great potential that Domaine Chanzy’s business has, combined with the extensive wine discounts on offer, we think this is going to be a very popular opportunity among investors.”
Despite global wine production falling to 271 million2 hectoliters in 2014, France reclaimed its top spot as the biggest wine producer in the world for the first time since 2011, and is on track to produce 46 million hectoliters.