Universal Music Group (AMS:UMG) stock is rising higher on Tuesday as the company debuts its shares on the Amsterdam Internet Exchange via an initial public offering (IPO).
Let’s dive into the details below for new investors interested in UMG stock.
- The initial public offering of UMG stock comes as a result of Vivendi (OTCMKTS:VIVHY) spinning off the business.
- This saw the company drop a 60% stake in Universal Music Group to its shareholders.
- It also resulted in the market capitalization of Universal Music Group jumping to $55 billion.
- That makes it the current latest listing of the year in Europe.
- It’s worth noting that the Universal Music Group IPO had a listing price of 18.50 euros per share for UMG stock.
- However, shares quickly shot above that to about 25 euros per share as of this writing.
- So why are investors so excited about UMG stock?
- It has to do with the rising sentiment that there’s still plenty of room for the music streaming industry to grow.
Lucian Grainge, CEO of Universal Music Group, said the following to Reuters about the IPO.
“I believe that we’re only at the beginning of the next wave of growth as music subscription and ad-supported consumption is scaling globally and has a long runaway ahead.”
While there’s no previous average trading volume to compare to, UMG stock is trading heavily today. As of this writing, some 52 million shares of the stock have changed hands.
Investors in the U.S. looking to grab shares of Universal Music Group stock can find it on the OTC Markets. It trades here as Universal Media Group (OTCMKTS:UMGP).
UMG stock was up 35.7% as of Tuesday morning.
Investors looking for more stock market news should stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.