The French government last month took in €2 billion (US$2.2 billion) by selling off most of its stake in the country’s lottery operator. President Emmanuel Macron proposed an initial public offering (IPO) of shares in Francaise des Jeux (FDJ), which operates the country’s lottery. According to Reuters, the pro-business president will use the proceeds to reduce the national debt and finance technology innovation.
The IPO was priced at €19.90 per share for institutional investors, the upper end of the range the shares were offered at. About 500,000 retail buyers also placed orders and will make up 40.5 percent of shareholders, the government said. Their shares included a discount, and were priced at €19.50.
Investors placed total orders worth 11 billion euros, said Finance Minister Bruno Le Maire, who called the IPO a “considerable success.”
The privatization will generate €2 billion in proceeds for state coffers when including a €380 million payment the FDJ owes the state to retain its monopoly rights for its lottery and sports betting business.
Le Maire said no other state assets are on the block as yet, though it’s likely the government will sell off ADP, owner of Charles de Gaulle International Airport, and energy company Engie.
“When we decided with Emmanuel Macron to launch this IPO, there was a lot of doubt, skepticism, and criticism against the decision,” Le Maire told the Financial Times. “I strongly believe that this decision is a fair and efficient one for the French economy.”
He added, “I clearly think that the role for the French state is not to be part of the French lottery. Our role is to invest in the future of young people in innovation and in new technologies.”
The French state will own 21 percent of the FDJ after the IPO, down from 73 percent.
