(BFM Bourse) – ID Logistics will join the Paris Stock Exchange’s second flagship index on Monday, June 19, when the market opens. OVH comes out of it after a complicated journey since its IPO.
The latest decision by stock market operator Euronext on the composition of the CAC 40 is undoubtedly driving the Paris Stock Exchange this weekend. This is a real event since the CAC 40 had not seen a newcomer since Eurofins Scientific in September 2021. Edenred, the specialist in payment solutions in the business world, known to the general public for its Ticket Restaurant brand will replace Vivendi.
But the second largest index of the Paris Stock Exchange also had the right to its spring cleaning. ID Logistics will enter the second largest index of the Paris Stock Exchange on June 19, ousting OVH from the SBF 120.
ID Logistics box
The Bucco-Rhodanian champion of so-called “contractual” logistics (the group manages the supply chain of its customers, with for example players in e-commerce, agri-food or DIY) will therefore join the SBF 120 a few days before summer. Although slightly down since the beginning of the year, the title of the group founded in 2001 has achieved an impressive stock market performance in recent years. Currently listing at 260 euros, ID Logistics has seen its stock market value increase more than tenfold since its IPO in 2012 at a price of 21 euros per share.
“The entry of ID Logistics into the SBF 120 marks a significant step in our development. It is the recognition of our uninterrupted growth for 20 years thanks to a specialist position in the contract logistics market and our financial performance that generate value for our shareholders”, explains Eric Hémar, Chairman and CEO of ID Logistics.
ID Logistics is setting a cruising speed that makes investors smile. Its revenues grew for the 21st consecutive year in 2022 (+31.9% in organic data to 2.48 billion euros) – a figure multiplied by more than 4.5 over the last 10 years.
Over the years, the Orgon-based group has established itself at European level as one of the main players in contract logistics. Through well-targeted acquisitions, ID Logistics now manages 375 sites located in 18 countries representing nearly 8 million square meters operated in Europe, America, Asia and Africa.
Big failure for OVH
On the other hand, it is disillusionment for OVH whose young stock market life is already strewn with pitfalls. And this, well before the IPO. Two days before its first steps on the stock market, a major outage due to “human error” had caused the decommissioning of thousands of websites hosted at OVH. And six months before OVH went public, a major fire had ravaged the group’s Strasbourg data center.
Two years after this fire, court decisions have also begun to fall. Last February, the Commercial Court of Lille Métropole, for example, condemned OVH to pay a company specializing in the brokerage of works more than 100,000 euros for damages suffered.
However, OVH had managed to make people forget these multiple disappointments, with a fairly convincing stock market performance in its first months of trading. After a spectacular “Christmas rally”, the stock had peaked in the first session of 2022, climbing to more than 28 euros on January 3. The group went public in October 2021 on the basis of an IPO price of 18.50 euros per share. But more than a year and a half later, OVH is trading below 10 euros at its historic lows, sanctioned by an unconvincing earnings trajectory. The file has not escaped the fundamental movement that has rolled technology stocks in 2022, whose prices are also very sensitive to changes in interest rates.
The year 2023 did not start under the best auspices for OVH. Last March, several investment funds decided to shed their OVHcloud shares. Then a month later, the group announced a half-year margin below expectations, leading it to lower all of its outlook for the 2022-2023 financial year ending next August. To justify this warning on its annual results, the group mentioned the volatile macroeconomic context and the postponement of certain projects against a backdrop of falling demand.
According to a specialist, this lowering of OVH’s ambitions was not a surprise, but suggests “that beyond the 2022-2023 financial year [ils] should improve but the market, for the moment, is focused on the short term”. For Derric Marcon, an analyst at Societe Generale quoted by Reuters, “investors (…) will wonder whether a challenger or a niche player as OVH can continue to grow as much as he said in a context where others say it is slowing down”.
Since this profit warning, OVH has been struggling to get back on track. And Euronext’s decision to oust the title from the SBF 120 could further fuel the climate of distrust that currently weighs on the case.
Sabrina Sadgui – ©2023 BFM Bourse
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