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Burgundy's Domaine Chanzy first company to use crowdfunding for IPO

Published:  02 February, 2015

Domaine Chanzy will be the first company in the world to use a crowdfunding platform to launch its initial public offering (IPO) on the AIM exchange.

An IPO being launched through a crowdfunding platform opens the door for different types of investors, specifically non-institutional investors, to have access to purchasing shares in a way not seen before.

The Burgundian wine company will use Seedrs, a UK crowdfunding platform, to sell shares on the London AIM exchange, which is the part of the London Stock Exchange that focuses on smaller growing companies that are seeking growth capital. 

"We are delighted to launch our IPO in London and to partner with Seedrs to do so. 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. 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," said Philippe Der Megreditchian, chief executive of Domaine Chanzy.

Domaine Chanzy will be listed under the ticker symbol 'WINE' and is looking to raise at least £1.9 million with a starting share price of 120p. Investors that purchase more than 1,000 shares will get discounts of up to 55% of a number of wines in the Domaine Chanzy's portfolio.

Seedrs will hold investor shares as a nominee, so individual investors will not need to have a separate trading or brokerage account. The offering will be in combination with several other City finance firms that will be offering the shares.

Shares will be able to be bought and sold per the normal market conditions and on a first-come, first-serve basis.