New York’s Warner Music seeks to raise $1.8 billion on 'June 2' Nasdaq IPO



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New York’s Warner Music seeks to raise $1.8 billion on 'June 2' Nasdaq IPO

On Tuesday, Warner Music Group Inc., the New York-based American multinational entertainment and record label conglomerate headquartered in Los Angeles, said that the recording industry titan had been looking to raise as much as $1.82 billion on its US IPO (Initial Public Offering), marking up the likely largest NYSE IPO thus far this year as the pandemic-driven rout in global stocks had weighed on IPO market with only a handful of public listings mostly from biotech and insurance firms.

Apart from that, the Warner Music, widely contemplated as one of the ‘big three’ recording companies and a long-cherished home to popular artists such as Cardi B, Bruno Mars and Ed Sheeran, said in a US SEC (Securities and Exchange Commission) regulatory filing earlier in the day that the company had set its IPO price target between $23-$26 per share for 70 million Class A shares, while an IPO at the upside of the target range would proffer Warner Music a market cap of $13.26 billion.

On top of that, the third-largest recording company in global music industry after Universal Music Group and Sony Music Entertainment, Warner Music Group Inc. had also added in the regulatory filing that the offering would not include any share sales from its majority owner billionaire Len Blavatnik’s Access Industries, while the offering would be entirely made up of share sales from the existing stakeholders.

Warner Music expects Nasdaq listing on June 2 as feeble IPO market sees higher tides

As beforementioned, this year’s IPO market had witnessed a wave of retreats alongside a raft of delaying or cancellations due to a cataclysmic financial fallout of the pandemic outbreak, nonetheless, the music industry appears to be more resilient to a sharp economic downturn.

Nevertheless, cautioning that the pandemic had hit its physical revenues and delayed new releases as the recording industry behemoth had reported a $74 million in operational losses at its second quarter of the year that ended on March 31st compared to a growth of $67 million a year earlier, Warner Music was quoted saying in the statement that it was expecting to price its IPO on June 2nd in the Nasdaq under the symbol “WMG”. However, Warner Music Group Inc.’s net debt stood at $2.98 billion as of March 31st, 2020.