The Endeavor Group (NYSE:EDR) stock price gained more than 5% on its first day of trading, and investors are paying close attention. In fact, it seems that Endeavor stock also attracted some pretty high-profile backers in its IPO, including the likes of Larry Ellison and Michael Dell. So what do you need to know right now?
Importantly, Endeavor is a holdings company that is all about entertainment and its wealth of intellectual property. It owns UFC, the American mixed martial arts promotion company. Endeavor is also the parent company of the Professional Bull Riders, Euroleague, On Location, IMG and the Hollywood talent firm William Morris. Together, this portfolio represents a vast stake in sports, live events and talent representation.
Today, it seems that investors really appreciate what Endeavor has to offer. Endeavor stock began trading at $24, the top of its IPO price range. This means that the company brought in $511 million through offering 21.3 million shares at the price.
And Endeavor is exciting even beyond its IPO. According to the company, that is because of the strength of the sports business. Endeavor President Mark Shaprio explained that sports are always in demand — no matter what platform or venue. Because of this, he is hopeful that the Endeavor IPO will see long-term success and support from retail investors. He is also planning on using proceeds from the IPO to further invest in the UFC and build the business.
The Endeavor Stock Price Gains With Big Backers
So beyond the wide appeal of sports, what helped the Endeavor stock price gain so much on its first trading day?
One answer comes from its high-profile backers. According to Sportico, the IPO drew in quite a few new recognizable shareholders. The list includes one-time UFC owners Frank and Lorenzo Fertitta, Larry Ellison and Michael Dell. Funds like the Dragoneer Investment Group and Mubadala, a sovereign investment fund from the United Arab Emirates, also participated as new investors in the IPO. Silver Lake also made the list.
These are not small names, and clearly, investors paid attention. As Endeavor gets familiar with its life in the public markets, keep a close eye on EDR stock. With the endorsement of Ellison, Dell and the Fertitta brothers, this is certainly a new offering worth watching.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.