Canal+ shares plummet in their debut on the London Stock Exchange

Canal+ has had a disappointing debut on the London Stock Exchange with the French film production company’s shares plummeting on its first day of trading.

The group, which is behind the hit Paddington films, listed shares in London after investors voted to approve the spin-off of its parent company, Vivendi.

Canal+’s share price on Monday was hailed by Chancellor Rachel Reeves as a boost for the City after another year marked by weak IPO activity, companies opting for rival stock exchanges and private takeovers.

But Canal+, which had hoped to raise up to £5bn, saw its shares fall almost 16 per cent from an opening price of 290p to 244.2p approaching midday.

Vivendi’s two other spin-outs, communications firm Havas and book publisher Louis Hachette Group, fared better in their respective debuts in Amsterdam and Paris.

Havas shares were up 6 percent by midday, while Hachette’s shares soared more than 16 percent.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that IPOs “are often hit by volatility during the first hours, days and even weeks of trading.”

He added that Canal+’s IPO “continues to be a boost for the City, especially considering that the decision was made due to the attractiveness of London among international investors.”

Streeter said: “For London, the Canal+ listing is a bright spot in what has been a slow year and marks the biggest listing since GSK spun off Haleon in 2022.

‘In terms of an IPO in development, 2025 looks a little more encouraging. Interest rate cuts on the horizon will help build confidence.

‘The stability that the new government has brought is also helping, after years of political uncertainty in the UK. But the US market, given its performance over the past year, remains a difficult scenario to follow.”