Warner Music (NASDAQ:WMG) has announced the launch of its initial public offering (IPO) and with it comes details that possible WMG investors might want to know.
Here’s what to know about the Warner Music IPO.
- The IPO starts today and has Access Industries and other shareholders selling 70 million shares of WMG stock.
- Warner Music is expecting the price of the IPO to range from $23 per share and $26 per share.
- Underwriters of the IPO will also have the option to acquire an additional 10.5 million shares of WMG stock.
- In total, that means the IPO can generate as much as $2.93 billion.
- However, it’s worth pointing out that Warner Music Group will not receive any proceeds from the offering.
- That’s due to the offering being made up entirely of secondary shares of WMG stock.
- Access Industries is the owner of Warner Music after purchasing it for $3.3 billion in 2011.
- It also will continue to hold 99% of voting power in Warner Music via a separate class of shares.
- The joint book-running managers and underwriter representatives for the IPO are Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC.
- Other joint book-running managers for the IPO include BofA Securities, Inc., Citigroup Global Markets Inc. and J.P. Morgan Securities LLC.
- There are also a large number of co-managers taking part in the Warner Music IPO.
- All in all, the IPO may value the company as high as $13.3 billion.
As of this writing, William White did not hold a position in any of the aforementioned securities.