Dubai, United Arab Emirates-Sunday 21 June 2020 [ AETOS Wire ]
Warner
Music Recording Studio was set to list on stock markets last Wednesday
and has represented the largest IPO of the year. Despite that, some
companies are delaying their listings due to COVID-19 pandemic, the
company has increased the volume of its offered shares from $70 million
to $77 million.
Issue price
was $25 per share, yet the company started its trading on the Nasdaq
Stock Market with the price of $27 per share. The stock price has grown
over $30 in the end of its first trading day, which represents almost
20.5% price growth.
Warner Music
received a total of $1.9 billion during its IPO. Moreover, market
capitalization of the company increased to $12.75 billion. The growth
has exceeded analysts' forecasts, who expected the company’s value to
roughly reach $6 billion.
The company
has been listed on New York Stock Exchange until 2011, when it was
purchased for roughly $3.3 billion by Access Industries, a company
belonging to a billionaire Leonard Blavatnik. Access Industries has been
a majority owner since. Based on information provided by
Tradingview.com, back then the share value was roughly $8 per share.
The New York
based company has, similarly to other recording companies, made
a progress and its position has significantly improved especially due to
development of subscription music streaming services such as Spotify,
Deezer, Tidal, Google Play Music or Apple Music. Recording companies
managed to compensate the loss caused by music piracy and stabilized its
market position.
Warner Music
is currently world’s third largest recording company based on the market
share and cooperates with celebrities such as Madonna, Ed Sheeran and
James Taylor. The two larger studios are Universal Music Group and Sony
Music Entertainment.
During last fiscal year, finished in September 2019, the company reported yields of $4.48 billion and profit of $258 billion.
Trading is risky and your entire investment may be at risk. TC’s available at https://alpho.com/
Contacts
Milosh Pham
Chief Analyst
Alpho
