Equity Analyst, LightStream Research

Oshadhi Kumarasiri

An equity research analyst with over 7 years of experience in multiple sectors. Previously worked for one of the world's largest asset managers with about USD2.5trn in AUM, covering small and micro-cap companies in the consumer sphere across Europe and developed Asia. Also experienced in covering multiple industries including banking, insurance and asset management, retail, tech, telco and REIT.

Equity Analyst

FDJ (French National Lottery) IPO Valuation: 32% ROE & 5% Dividend Yield Merits a Higher Valuation

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

La Francaise des Jeux / Equity Capital Markets

La Française des Jeux (FDJ) is the French national lottery established in 1933 with the view of using the profits to support the following causes: reintegration of war veterans of the first world war into the society, supporting victims of agricultural disasters.FDJ is the largest company in the French gaming sector and has a monopoly in draw and instant lotteries (both point of sales and online) as well as point of sale sports betting in France. Based on gross gaming revenues, FDJ is second only to Italy’s Lottomatica in Europe, and also the 4th largest player in the world.The French government owns about 72% of the share capital of FDJ and through this IPO on the Euronext Paris, the government plans to reduce the ownership to 20% and in return expects to receive €1.6-2.0bn.The IPO got approval from the French Financial Markets Authority on 17th October 2019.Indicative Timetable Books Opened – 7th November 2019Books Closing    – 19th November 2019 (French Public and Employees) / 20th November 2019 (Global Placement)Price Setting      – 20th November 2019  Trading               – 21st November 2019As a part of a privatisation initiative, the French government plans to divest a maximum of 99.32m shares (52% of share capital) of FDJ through this IPO. The price range is set at €16.50-19.90 per share for the global placement and €16.17-19.50 per share for the French nationals. There is also an over-allotment option for 15% of the cumulative number of shares sold under the global placement and French public offering.The set price range implies a market capitalisation of €3.15bn-3.80bn, which would make FDJ one of the largest listed lottery companies in the world.

La Française des Jeux (FDJ) is the French national lottery established in 1933 with the view of using the profits to support the following causes: reintegration of war veterans of the first world war into the society, supporting victims of agricultural disasters.FDJ is the largest company in the French gaming sector and has a monopoly in draw and instant lotteries (both point of sales and online) as well as point of sale sports betting in France. Based on gross gaming revenues, FDJ is second only to Italy’s Lottomatica in Europe, and also the 4th largest player in the world.The French government owns about 72% of the share capital of FDJ and through this IPO on the Euronext Paris, the government plans to reduce the ownership to 20% and in return expects to receive €1.6-2.0bn.The IPO got approval from the French Financial Markets Authority on 17th October 2019.Indicative Timetable Books Opened – 7th November 2019Books Closing    – 19th November 2019 (French Public and Employees) / 20th November 2019 (Global Placement)Price Setting      – 20th November 2019  Trading               – 21st November 2019As a part of a privatisation initiative, the French government plans to divest a maximum of 99.32m shares (52% of share capital) of FDJ through this IPO. The price range is set at €16.50-19.90 per share for the global placement and €16.17-19.50 per share for the French nationals. There is also an over-allotment option for 15% of the cumulative number of shares sold under the global placement and French public offering.The set price range implies a market capitalisation of €3.15bn-3.80bn, which would make FDJ one of the largest listed lottery companies in the world.

International Game Technology Ordinary Shares (IGT US)

International Game Technology Ordinary Shares

FDJ (French National Lottery) IPO: Odds of Winning Are Better than Their Lotteries