Sodexo spin-off Pluxee valued at 4.1 billion euros in Paris debut

(Reuters) -Shares in Pluxee rose as much as 15% on their market debut in Paris as investors showed appetite for the newly spun-off voucher unit of French caterer Sodexo, which has benefited from the cost-of-living crisis.

Employers have been turning to voucher companies like Pluxee as they look for ways to support staff without having to increase wages, as well as offering perks to encourage workers to return to the office rather than working from home.

As of 1129 GMT, Pluxee shares were at 27.9 euros, up 7.5% on the 26 euro reference price announced by stock market operator Euronext, and valuing the company at around 4.1 billion euros. They were earlier up as much as 14.9%.

Pluxee, which is present in 31 countries and has more than 500,000 clients, is the biggest listing by market cap on Euronext so far this year, offering hope for recently sluggish European capital markets.

Proceeds raised on Europe's initial public offering market fell for the second year in a row in 2023, according to PwC, generating 10.2 billion euros, down 35% on the previous year.

Pluxee set out its strategy and targets in January, saying it was aiming for low double-digit percentage organic sales growth until 2026. It aims to sign 1.3 billion euros worth of contracts from new clients annually.

Analyst Yi Zhong at Alphavalue said she was positive about Pluxee's prospects going forward because of its business model and cash generation. Its mid-term targets are "maybe a bit prudent", she said, adding that she expects a better performance.

The Bellon family will hold about 42.8% of the outstanding ordinary shares and 60.0% of voting rights, Pluxee said in a statement.

($1 = 0.9268 euros)

(Reporting by Olivier Sorgho and Stéphanie Hamel; editing by Jason Neely and Kylie MacLellan)