The fall in the London listing of French broadcaster Canal+ after its spinoff from Vivendi is 16%.

• The stock price of French broadcaster Canal+ dropped by almost 16% on its London debut Monday.
• The Paddington film franchise is produced by Studiocanal, which is a subsidiary of the pay TV and production company, Canal+.
• At 9:13 a.m. London time, shares were trading at approximately 252 British pence ($3.19), which is a 13.1% decline from the opening price.

The stock price of French broadcaster Canal+ dropped by almost 16% on its London debut on Monday.

Last week, the media holding company's shareholders approved the separation of Canal+, a renowned pay TV and production company, and Studiocanal, the producer of the Paddington film franchise.

The stock was trading at approximately $3.07 at 10:13 a.m. London time, a 15.7% decline from the day's opening price.

At 10:13 a.m. London time, Paris-listed shares of Vivendi rose 33.2%.

Maxime Saada, CEO of Canal+, stated on CNBC's "Squawk Box Europe" Monday that Vivendi was undervalued due to a conglomerate discount. As a result, the company's estimated value was less than 10 billion euros ($10.52 billion), despite the sum of its parts being much greater. To unlock the potential of each asset, Vivendi decided to split.

Canal+ was once a primarily French company with 9 million subscribers. In just a decade, it has tripled its subscriber base, with two-thirds of its subscribers now located outside of France, in Africa, Eastern Europe, Asia, and France.

Canal+, spun off from Saada, aims to increase its sports broadcasting presence and compete with U.S. players in a selective manner.

"I've noticed that every company that has gone bankrupt in our industry is due to excessive spending on sports," he stated. "We don't rely on any specific content because we have a diverse value proposition that includes cinema, sports, and platforms. This allows us to decline rights when we believe they are too expensive."

The Paris-based media conglomerate is spinning off Havas and Louis Hachette Group, which will be listed on the Euronext Amsterdam and Euronext Growth Paris, respectively.

The spin-off project of Vivendi has seen a very high adoption rate, with over 97% of votes in favor, which confirms the strong support of our shareholders for this transformative transaction, as stated by Yannick Bolloré, chair of Vivendi's board, last week after the plan was approved.

The debut of the Canal+ London listing was viewed as a means to enhance the U.K.'s capital markets, which have experienced a series of departures in recent years. On Friday, Chancellor Rachel Reeves stated that the debut represented a "show of confidence."

The UK has been chosen by CANAL+, a leading international media company, as a result of their confidence in the UK's capital markets, stability, and plan for change.

The London Stock Exchange is on track for its worst year for departures since the financial crisis, with 88 companies delisting or moving their primary listing from London's main market, while only 18 have joined, according to an FT report citing the LSEG.

Despite government and regulator efforts to enhance London's appeal as an investment hub and modify listing rules to compete with rival markets, particularly in the U.S., LSE departures have still occurred.

According to Russ Mould, investment director at AJ Bell, it is crucial to select London for Canal+ as it is the largest company to join the UK stock market since the summer's listing rule changes and under the new Labour government.

"If Canal+ performs well, it could serve as a showcase for other major brands to enter the London market and replenish the depleted fund due to acquisitions and delistings," he stated.

The fate of other potential U.K. listings, including that of Singapore-based fast fashion giant Shein, will now be closely watched by investors. The online fashion group has been engaged in ongoing discussions with the British government after shelving its flotation bid in the U.S. amid pushback over its ties to Beijing and broader labor practices.