Billionaire’s $363 Million Blank-Check Firm Jumps in Paris Debut

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A blank-check firm listed by French billionaire Xavier Niel and two other partners surged as much as 31% as shares start trading in Paris after raising 300 million euros ($363 million) in Europe’s largest such listing of the year.

The special purpose acquisition company called 2MX Organic was brought to market by Niel, the billionaire behind telecom carrier Iliad SA, Matthieu Pigasse, who runs Centerview Partners’ Paris office, and supermarket chain owner Moez-Alexandre Zouari.

2MX Organic shares gained 5% to 10.50 euros at 9:19 a.m. in Paris. The firm sold 30 million units at 10 euros each, with each unit consisting of one redeemable share and one redeemable warrant. The warrants will trade separately.

Listing a SPAC has been the go-to method for wealthy sponsors to raise money for takeovers this year, with a record $74 billion raised in the U.S. Though several European business tycoons have lined up blank-check listings, many have shunned their home turf to tap New York’s deeper pool of investors.

Only one other SPAC has listed on a European stock exchange this year: Dutch Star Cos Two BV, which started trading in Amsterdam last month. Meanwhile, 2MX Organic brings some much-needed respite for Paris after a very slow year for listings. Its offering alone raised more than all other French IPOs in 2020 combined, data compiled by Bloomberg show.

2MX Organic plans to tap into heightened demand for organic food and sustainable consumer goods by acquiring one or several businesses in the sector. The company is said to be seeking an initial target worth as much as 2 billion euros.

Once the vehicle completes an acquisition, the warrants can be exercised and will be valid for five years thereafter. Four market warrants will be required to subscribe to one new ordinary share of 2MX Organic at an exercise price of 11.50 euros apiece.

Upon completion of the offering, the founders will hold 24.8% of the company’s capital and voting rights. Zouari, who is its chief executive officer, participated in the IPO and purchased units worth 18 million euros. In France, Zouari is known for his investment in frozen-food retailer Picard Groupe SAS. He recently tried to snap up the organic supermarket chain Bio C’ Bon, which was in receivership, but he was trumped by a Carrefour SA bid.

Niel is known for his telecommunications, media, technology and real estate investments. He won a corporate governance battle along with Leon Bressler to prevent a 3.5 billion-euro capital increase plan at mall owner Unibail-Rodamco-Westfield last month. Pigasse also owns media assets in France such as Les Inrockuptibles magazine, Radio Nova and music festival Rock en Seine. Both men also own stakes in the group behind the daily Le Monde.

Niel and Pigasse teamed up in 2016 to launch a vehicle for media acquisitions which led to the creation of Mediawan SA, led by Pierre-Antoine Capton.

Deutsche Bank AG was global coordinator on 2MX Organic’s listing, alongside bookrunner Societe Generale SA.

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