Warner Music has revealed its IPO pricing today. The stock is priced at $25 a share, the higher end of its $23 to $26 price range.
By Muhaimin Olowoporoku
Updated
2 mins read
Warner Music Group Corp., as a way of showing support against police brutality in the U.S., delayed its initial public offering (IPO) pricing till Wednesday. The support for the movement against police brutality extended throughout the entertainment industry. Musicians and entertainers generally had to cancel online music performances in support of the campaign against police brutality.
The firm also in March delayed its IPO because of the ravaging coronavirus that hit capital music markets and halted many listing.
However, the music group would go on with their IPO on Wednesday, according to anonymous sources close to the firm. Although the music group is not issuing new shares on its IPO, instead, entities controlled by billionaire Len Blavatnik are selling most of the 70 million shares.
Today it has become known that WGM will be sold at $25 a share. Reportedly, the Warner Music share sale could raise around $19 billion as the firm is valued at $13 billion.
Before the music group delayed its IPO, Tencent Holding, a Chinese internet firm, showed interest in investing in the music group. They were in talks of investing $200 million in Warner music IPO, according to the Wall Street Journal.
In line with that bid, the music group was also said to be working on getting another firm alongside Tencent that would bankroll its $1.8 billion fundraising goal. Warner Music group listing could mark as the largest New York IPO so far in 2020, returning to the public market after nine years. According to Kathleen Smith, principal at Renaissance Capital, it could be one of the busiest weeks in a while.
Apart from Warner Music looking to raise money in the IPO market this week, other firms like NetEase and Zoominfo Tech are also looking to raise capital in the market with the sum all companies in the market aim to raise pegged at $6.4 billion.
Recently, it has become known that Chinese online gaming firm NetEase Inc (NASDAQ: NTES) whose shares are already listed on the National Association of Securities Dealers Automated Quotations System, has announced its plans push for a secondary listing in Hong Kong.
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Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.
