The major music Warner Music Group, one of the three major record companies worldwide, has made a comeback on Wall Street Wednesday, after a nine-year absence, with the largest ipo since the beginning of the year.
Listed on the Nasdaq under the symbol WMG, the title flew down from 15.6% to 28,90 dollars around 16: 05 GMT, shortly after the first listing.
This price was considerably higher than the $ 25 per share announced on Wednesday morning in a press release from the group, which has sold 77 million shares. In total, the company sought to raise more than $ 1.9 billion.
The share price was to be fixed on Tuesday night but, according to several u.s. media, the company had preferred to postpone the announcement because of the move ” Blackout “, in support of the hundreds of thousands of protesters who for the past week to denounce the violence that police are racist in the United States.
The range of initial price was in the range 23 to 26 dollars per share, and 70 million shares were initially proposed.
The fund Access Industries, billionaire Russian-american Len Blavatnik, who purchased the record company in 2011 for $ 3.3 billion, will pocket the money and will retain its majority stake.
Warner had deferred its ipo due to the pandemic of Covid-19.
The virus has seriously affected the music industry, in particular the performances. A report from the bank Goldman Sachs expects a decrease of 25% of the world’s income but is more optimistic for 2021.
Warner is one of the big three that dominate the global market for music, alongside Americans Sony Music Entertainment and Universal Music.
Its catalogue, among hundreds of artists, Ed Sheeran, Cardi B, Christine and the Queens, but also Eric Clapton, Gorillaz, Missy Elliott or Phil Collins, or the old albums of Madonna, for example, which has changed the label.
The major owns and operates some of the labels most well-known, including Atlantic Records, Elektra Records, Warner Records and Parlophone. It has also the largest music publisher in the world, Warner Chappell Music.
For its fiscal year 2018-2019, ended 30 September, Warner Music Group has achieved a turnover of $ 4.5 billion (+12%) and a net profit of 258 million(-17%).