Seedrs, the prominent UK-based equity crowdfunding platform, today announced that it is hosting a campaign for the IPO of Burgundy vineyard Domaine Chanzy.
This is the first instance of a company conducting an IPO using crowdfunding. 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.
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.”
Significant step for crowdfunding
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).
Investor discounts on Domaine Chanzy wines
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.
About Domaine Chanzy
Domaine Chanzy SA is the parent company of the Chanzy Group, a leading producer of red and white Burgundy wines from Pinot Noir, Chardonnay and Aligoté grapes grown in the Burgundy region in France. Domaine Chanzy manages the Group and owns approximately 30 hectares of vineyards located in the Côte de Nuits, the Côte de Beaune and the Côte Chalonnaise in the Burgundy region. Maison Chanzy, a wine negociant company and wholly-owned subsidiary of Domaine Chanzy SA, produces wines ranging from the highest quality Grand Cru appellations through to Burgundy regional appellations.
About Seedrs
Seedrs is the most active equity crowdfunding platform in Europe. It provides a simple online platform for investors to buy into businesses they believe in and share in their success, and it allows ambitious businesses to raise capital from the investors most relevant to them. Seedrs launched in London in 2012, opened to investors and entrepreneurs across Europe in 2013 and began expansion into the United States with the acquisition of Junction Investments in 2014. Seedrs is authorised and regulated by the Financial Conduct Authority.
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