Streaming the change
Success of the IPO
on Euronext Growth® Paris
“More than 200 million users across more than 50 countries use our solutions to stream the videos they love!”
of the data generated globally are provided by video streaming
Video streaming already accounts for more than 50% of the data generated globally and its development continues to accelerate driven by fundamental trends: acceleration of uses with the development of fibre and 5G networks, broad increase in multiple subscriptions and the explosion of viewing times, acceleration of targeted advertising, transition of the market to the cloud…
All of this means there are many challenges ahead. For spectators worldwide, the aim will be to guarantee quality of experience across all screens, everywhere, at all times, regardless of viewing conditions.
Sector professionals also have high expectations: audience retention, monetisation of services, control of infrastructures, energy consumption, etc.
Since its creation in 2010, Broadpeak has been responding to all of these challenges by providing high-performance software solutions to the world’s leading streaming providers: large TV and telecom operators, global OTT players, as well as new media in the spheres of business, sports and entertainment.
At the end of 2021, Broadpeak had already secured 125 loyal customers across 50 countries, representing 200 million spectators worldwide. Our customers include leading players like Bouygues Telecom, Orange, Telecom Italia, Deutsche Telekom, HBO, Mola TV, StarHub TV+, Megacable, etc.
Source: Sandvine – The global internet phenomena report January 2022
Broadpeak in figures
Growth and profitability
|Average annual growth of 40% since 2015|
|2021 revenue of €33.1m, gross margin up 50%|
|EBITDA margin of 9% of revenue in 2021|
|Nearly 90% of business generated abroad|
|125 customers across 50 countries|
|Operating directly in 21 countries|
|€40m invested in R&D since 2010|
|47% of the workforce mobilised|
|11 patent families|
An international leader in video streaming software solutions
Solutions that are already deployed today across 50 countries for clients with more than 200 million loyal spectators worldwide.
A market expected to reach nearly €7bn in 2022, and to show steady growth
(1) (1) Frost & Sullivan, Internal Market Research
Global forecast to 2025 & Limelight Quarterly Report & Limelight Networks, Strategy Session, 2021 / & MarketsandMarkets - Content Delivery Nework Market
Average annual growth of nearly 40% over the last six years, demonstrated profitability
Earnings were also on track, with gross margin up 80% in 2021 (to €26.7m) and EBITDA of nearly €3m.
An increase in recurring revenue accelerated by the commitment to SaaS
Solid visibility for 2022, high but realistic ambitions: Revenue of €100m by 2026 for EBITDA of 20%
Where earnings are concerned, Broadpeak is confident it can achieve positive EBITDA, incorporating the investments needed to speed up gains in market share.
For 2026, it is targeting revenue of €100m: X 3 compared to 2021. This will include a contribution from recurring revenue (maintenance and SaaS) of around 40% of total business and an EBITDA margin of 20%.
WHAT IS THE AMOUNT OF THE OFFERING?
- Approximately €20.0 million for 100% subscription of the capital increase (calculated on the basis of a price equal to the midpoint of the indicative range of the offering price, i.e. €6.73),
- Around €23.0 million if there is full exercise of the extension clause (based on the midpoint of the offering’s indicative price range, i.e. €6.73),
- Around €26.4 million if there is full exercise of the extension clause and the overallotment option (based on the midpoint of the offering’s indicative price range, i.e. €6.73).
WHAT IS THE PURPOSE OF THE TRANSACTION?
Broadpeak’s IPO aims to provide the Company with the necessary financial resources to implement its development strategy and accelerate its growth. The net proceeds of the offering (an estimated net amount of €18.2 million in the event of a 100% Offering, which could be increased to €21.1 million in the event of full exercise of the Extension Clause of the Overallotment Option) will enable Broadpeak to pursue the following objectives:
- Around 60% of the funds will be dedicated to financing investments in innovation, R&D and technological developments;
- Around 40% of the funds will be dedicated to supporting growth by strengthening the sales teams and marketing efforts to promote the Multicast ABR platform and the SaaS platform
WHAT IS THE SUBSCRIPTION PRICE OF THE SHARES?
WHAT METHOD IS USED TO SET THE OFFER PRICE?
HOW DO I SUBSCRIBE FOR THE IPO?
HOW DOES AN OPEN PRICE OFFER WORK?
Under an open price offer (OPO) private individual investors can indicate the quantity of shares they wish to subscribe for without mentioning the price. At the end of the subscription period, the definitive price is set by the Company’s Board of Directors by comparing the supply of shares under the Global Placement among institutional investors and the requests made by them (in line with the industry-standard book building approach) within the share price range proposed for the global offering. Only orders subscribed at a price higher than or equal to the definitive price may be served.
If there is strong demand for the shares by private individual and institutional investors, the individual requests of each investor may not be entirely served, in which case the requests will be reduced proportionally in accordance with the rules of priority for A1 and A2 orders (see section on “breakdown of orders by number of shares requested”). The fixed price is the same for everyone, both private individual investors and institutional investors and must be between a bottom range price of €6.41 per share and a top range price of €7.05 per share.
Breakdown of orders by number of shares requested
Orders will be broken down by the number of shares requested:
Order fraction A1 (between 1 and 250 shares);
Order fraction A2 (over 250 shares).
The A1 order fractions will receive preferential treatment relative to the A2 order fractions in the event that all orders cannot be entirely satisfied.
WHAT IS THE DEADLINE FOR SUBSCRIPTION?
WHAT ARE THE LOCK-UP AND HOLDING COMMITMENTS?
Lock-up agreement entered into by certain shareholders of the Company (Founders of the Company as well as Eutelsat and Technicolor Delivery Technologies SAS): 365 calendar days
I AM NOT A FRENCH RESIDENT, CAN I SUBSCRIBE FOR THE OFFERING?
ARE THERE ANY SUBSCRIPTION COMMITMENTS ?
To date, the Company has received subscription commitments from third-party investors for €7.5 million, with a price limit corresponding to the lower end of the indicative range of the Offering price, i.e. 39.4% of the Offering at the lower end of the range, broken down as follows:
- Vatel Capital for €4 million;
- Arbevel financial for €2.5 million;
- Eiffel Investment Group for €1 million;
Broadpeak in the news
Approval of the Prospectus by the AMF
Start of the open-price offering
Closing of the open-price offering at 5.00pm Paris time for OTC subscriptions and 8.00pm Paris time for online subscriptions
Closing of the global placement at 12 noon Paris time.
Distribution of the press release indicating the result of the Offering
Settlement-delivery of the open-price offering and the global placement
Start of trading on Euronext Growth® Paris
Start of possible stabilisation period
Deadline for exercising any overallotment option
End of possible stabilisation period
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