If Universal Music Group’s Guardian is a spin-off album or single from Vivendi, it will be number one with Bullet in terms of the old music industry: with the closing price of. 25.10 on the first day of the company’s stock launch in Euronext Amsterdam, the world’s largest music company 18.50 to 36.5%.
Splash a has a market value of ৫ 5.51 billion (53 55.77 billion), which easily justifies the pink valuation that investment analysts floated before the initial public offering.
In a report released ahead of Tuesday’s launch, Barclays made the most optimistic forecast when its London office estimated valuation at .4 41.4 billion ($ 48.4 billion), up from its previous calculation of 38 38.5 billion.
Mark Mulligan, managing director of UK media analysis firm MIDIA Research, said: “This would suggest that Vivendi has found a balance against raising its price. “If you’re an institutional investor and want to add music to your portfolio, UMG is as good as it gets.”
Although Monday was a tough day for the New York exchange, UMG’s Amsterdam offer, which launched at New York time at 8am, “showed the appetite for massive investors to come out of the gate,” said Daniel Ives Wadebush Securities, managing director of Equity Research. “It’s a good sign for the music sector.”
UMG trading 25.25 ($ 29.61) flew out of the gate at the start of trading. It reached a high of .4 26.45 (31.01) but returned slightly lower than its initial bidding towards the end of trading. The parent company Vivendi, which holds a 10% stake in Music Major, has lost more than 20% of its shares on the Paris Exchange.
With the exception of 10% of Vivendi, a group of investors led by Chinese media giant Tencent held 20%, which it bought in two parts for about 6. 6.6 billion, while hedge fund billionaire Paul Ackerman’s Parsing Square Holdings held 10% in August for about 9 3.95 billion.
It was Tencent’s announcement in the summer of 2019 that its consortium planned to invest 10% of UMG, which initially prompted Morgan Stanley to pay around billion 1 trillion for a unique universal music. Competitors have encouraged Warner Music Group to release in 2020.
Indeed, despite a rocky Monday for most U.S. stocks, with the S&P 500 down 1.7% for its worst trading day since May 12, UMG’s Splash news lifted Warner Music’s stock by nearly 10% to 8.4% gain in today’s trading. Parsing Square also benefited, as the value of the hedge fund increased by about 5%.
Concerns over how the Federal Reserve will react to China’s tough asset market, inflation and employment, the ongoing impact of the US government’s shutdown on the government’s ceiling showdown and Covid’s Delta variant hit Wall Street on Monday. , But the prospects of investing a pure-play music in an industry that benefits from the strong revenue provided by streaming have given music companies not only a stormy weather, but a real upsurge.
The stage was set for UMG’s debut, the equivalent of the opening bell of the Gong-Amsterdam New York Stock Exchange – by chairman / CEO Lucian Grange, attended by senior members of UMG’s senior management. Members of Euronext Amsterdam hit Gong Live about 15 minutes before the start of trading.
“Today’s list marks an exciting milestone in the history of UMG, reflecting our position as the world’s leading music-based entertainment company and our deep commitment to our amazing artists, songwriters and partners,” Grange announced as Trading Open. “We thank the Euronext Amsterdam team for working on this list and look forward to a great partnership together.”