The valuation of Club Brugge revised downwards
Club Bruges will enter the Euronext markets at a price range between 17.5 to 22.5 euros per share. This values him to a maximum of 258 million, much less than initially expected. “CLUB” should thus make its appearance on March 26 on Euronext Brussels.
Since the announcement of its future market introduction, the valuation of the Club Brugge decreased. At the time, we were talking about at least 400 million euros, where Ajax Amsterdam was worth 287 million euros on Tuesday night.
The promotion of the Blues and Blackss now sits at 229 million in the middle of the range and 258 million in the upper end. This corresponds to 10 times the net profit of Club Brugge over the 2019-2020 season (24.5 million euros).
Were the official estimates therefore overvalued? Or were investors not prepared to see the Club as a “normal” business, showing recurring profits?
On the basis of the price range published, the transaction should bring in between 57 and 105 million euros for the group of shareholders led by chairman Bart Verhaeghe.
As expected, no new shares will be sold during the IPO.
Should demand increase, Bart Verhaeghe & Co will sell between 30% and 40% of their Club shares. Their participation in the club will then drop from 94.34% to 66% or 53.6%.
The Fan Club
As with any IPO in Belgium, at minus 10% of the shares (listed under the code “CLUB”) are offered to retail investors. The Club supporters will therefore be able to hold a significant part of the institution.
For the individual investor, the subscription period runs from March 17 to 25. In the event of strong demand, investors who have subscribed via Belfius will be privileged. The bank, sponsor of Club Brugge, is primarily responsible for selling the shares to individuals. Credit Suisse, JP Morgan and Berenberg are the other banks active in this operation.
Finally, it should be noted that the Club specifies that once listed, the company will no longer publish quarterly results. The board of directors of the Blues et Noirs will be for its part ccomposed of 7 members. In addition to the current shareholders (Bart Verhaeghe, Vincent Mannaert, Jan Boone and Peter Vanhecke) the board will also welcome three independent directors: Sangeeta Desai, Lucy Quist and Cind Du Bois.