Crowdfunding will enter new territory this month as an equity fundraising platform is used to kick-off an IPO for the first time. Domaine Chanzy, a French vineyard and winemaker, plans to offer armchair investors £1.9m of its shares for £1.20 a go through Seedrs, before listing on AIM.
Investors can put in any amount from £10 and up and those putting in more than £1,200 will be entitled to a 55% discount on the vineyard’s wines. The company plans to spend the money on improving its distribution network and expanding working capital, as well as launching a new Burgundy wine brand.
‘Domaine Chanzy will be unique in being the only French wine specialist listed in London as well as the only French company listed on AIM,’ said the company’s CEO, Philippe Der Megreditchian. ‘We have ambitions to be one of the top wine producers in Burgundy and this unique approach to listing on AIM via crowdfunding will enable us to reach a wide investor base and deliver on our strategy.’
The crowdfunding round will take place alongside a traditional roadshow that will attempt to raise the rest of the cash to finance the float. The valuation of the company is expected to be around £10m.
This method of crowdfunding is likely to be popular with investors, who usually have very little control of their stake until an exit or new round of investment occurs. Shares in Domaine Chanzy will be held by Seedrs as nominee but investors will be able to sell them at any time – as long as someone wants to buy them.
The Domaine Chanzy IPO isn’t the first 'first’ for Seedrs. It previously conducted the first ever crowdfunding round for an already-listed company – Chapel Down wines, which is listed on AIM. It also became the first platform to offer convertible notes, which give investors the chance to buy equity at a discount at a later date. If Domaine Chanzy's fundung round gets enough investors on board then the Seedrs team could be quite literally toasting another success.