The title of best performer on the Paris Stock Exchange over the last five days goes to an Italian company in the “tech” sector, unknown to the general public even though its application is distributed on Apple Store and Google Play. Tatatu, introduced on Euronext Growth last Wednesday following a private placement at a price of 2 euros per share, has since seen its price multiply by 5 to be worth 8.1 billion euros today, i.e. more than the current valuation of Cac 40 multinationals like Alstom and Unibail-Rodamco-Westfield and even twice as many as Air France-KLM. However, Tatatu, which rewards its users with tokens of its own (the “TTU Coin”) for interacting on social networks (posting photos on Instagram, adding friends, distributing “likes” on TikTok or commenting and sharing Facebook posts) does not have a turnover in the billions.
In 2021, the company achieved less than 50 million euros in turnover, according to management statements, i.e., in a whole year, what Air France-KLM earns in not even two days. But the business is profitable, with a net profit of 1.3 million euros last year, underlines its founder and CEO, Andrea Iervolino, film producer, who also runs the company Iervolino & Lady Bacardi Entertainment (in rank of those who finance the film “Ferrari” with Christian Bale, Adam Driver and Penelope Cruz, expected in theaters next year), with a chaotic course on the Stock Exchange (-50% just since the beginning of 2022, the year of its listing at Paris, by direct quotation, after an introduction in Milan in 2019).
Tatatu entered Euronext via a direct listing procedure, with much more flexible regulatory constraints, and which normally only addresses a population of qualified investors, those who have the experience, knowledge and know how to assess correctly the risk. However, amateurs can be considered as professionals if they expressly request it.
An investor can absolutely ask his bank or his broker to be treated as an expert if he meets at least two of the following three criteria: hold a portfolio of more than 500,000 euros, have carried out at least ten transactions of significant (600 euros) per quarter on average over four quarters and/or have been employed for more than one year in a position in the finance sector. And knowing that this status is only declarative, no supporting documents are required, it is therefore accessible to Mr. Everyman… at his own risk. The qualified investor reduces his chances of being compensated in the event of a dispute.
Tatatu, created in 2018, had the primary objective of paying users of its platform in “TTU Coin” to watch films or listen to music on its ecosystem, enriched with content by brands seeking promotion.