“I’m pleased to share that today Seedrs is launching the first-ever crowdfunding campaign for a company’s IPO.”
It should be noted that SyndicateRoom claimed the same for an IPO this past December for Mill Residential REIT.
Appropriately the ticker symbol for this security will be “WINE”. The issuing company claims a heritage that is over 250 years old.
The hybrid securities offer is by well the established Burgundy Winemaker Domaine Chanzy. The company will float shares on the London Stock Exchange’s (LSE) Alternative Investment Market (AIM). Domaine Chanzy believes blending an equity crowdfunding round with a public listing will “expand its investor base and attract advocates for the brand”. The offer will be EIS eligible and investors who purchase a minimum of £1200 in shares will be able to receive discounts on the full range of Domaine Chanzy wines.
Investors both small and large will be able to take advantage of this opportunity starting at £10 – a stark contrast to the traditional approach of excluding most retail investors. The winemaker is raising a minimum amount of £1.9 million for 19.66% equity and has a pre-money valuation of £ 7,765,315. As of today 71 investors have committed to the offer.
The Chanzy Group is a producer of red and white Burgundy wines from Pinot Noir, Chardonnay and Aligoté grapes grown in the Burgundy region in France, and comprises several companies. Domaine Chanzy SA, the parent company, 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.
Management states that the capital raised will go towards working capital requirements and to develop its distribution network. The funds will also be directed at building a new Burgundy wine brand targeting overseas customers.
This is not the first time Seedrs has mixed a public issue with a crowdfunded opportunity. Last year Chapel Down raises a respectable £3.95 million in a blended offer. At the time company representatives expressed their vision of larger, more established companies leveraging crowdfunding to benefit from the social power of the new approach to raising capital. The UK, unlike its counterparts in the US, have built an effective marketplace for investment crowdfunding boosted by a light touch regulatory approach that has seen a growing number of companies doing a crowdfunding finance round.
“It’s a great opportunity for the company to raise investment from a larger, more diverse, base of investors, enhance its profile among UK and other potential consumers in Europe and an appealing way to build long-term brand engagement among a wide base of investors.
Our vision has always been to provide a platform for people to invest in the businesses they believe in.”
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