Warner Music Group is back on Wall Street nine years later. The shares of the record giant 16% shoots up this Wednesday in which it debuts on the Nasdaq, a parquet in which it has starred in the largest IPO of this year in the world. The label of artists like Ed Sheeran, Bruno Mars or Cardi B debuted at $ 25, but their shares are close to $ 30.
The public sale offer (IPO) has been articulated through the placement of 77 million shares, which translates into a total fundraising of 1,925 million dollars, about 1,715 million euros in exchange. Quite a feat under the symbol ‘WMG‘in times of the coronavirus.
In this sense, the record label owned by the Access Industries group, founded by the investor of Ukrainian origin Leonard Blavatnik, had deferred his initial plans to release on Wall Street for March, month in which the coronavirus hit the world stock markets with a strong crash. An initial placement price of $ 23-26 had then been set.
Margin to gain weight
However, the final volume of the operation could be fattening, since the coordinating banks of the operation will have the right to buy during the next 30 days an additional package of 11.55 million ordinary shares. Initially, the amount was expected to be 10.5 million. Thus, the company could raise a total of 2,213.7 million dollars.
Registered last week with the US Securities and Exchange Commission (SEC), in the prospectus for the transaction, the world’s third-largest record label warns that “it will not receive any amount from the sale of shares that Shareholders carry out in this offering, “which will consist of shares sold by Access Industries and other current shareholders.
Dividend in sight
Warner Music Group announced that it plans to establish the Payment of a quarterly cash dividend of $ 0.12 per share, whose first disbursement would take place next September.
In the first half of its fiscal year, the company obtained an attributable net profit of $ 46 million, 70% less than in the previous year. Meanwhile, the company’s turnover increased 1.5%, to $ 2,327 million.