- Warner Music Group plans to list 70 million shares on the Nasdaq exchange, reviving IPO plans that were first cancelled amid the coronavirus outbreak.
- The label giant plans to sell shares between $US23 and $US26 each, according to a Tuesday regulatory filing, meaning the IPO could bring in as much as $US1.8 billion.
- The company first announced its IPO plans in early February but pulled back after the pandemic disrupted physical retail operations, concert plans, merchandise sales, and video shoots.
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Warner Music Group announced Tuesday it plans to list 70 million shares about three months after cancelling the multibillion-dollar initial public offering.
The label conglomerate aims to sell shares between $US23 and $US26 each and bring in as much as $US1.8 billion, according to a Tuesday regulatory filing. The company will list shares on the Nasdaq exchange under the ticker WMG.
Warner Music initially planned to go public in the first quarter but pulled its IPO after the coronavirus slammed financial markets. The pandemic and corresponding government responses disrupted the company’s supply chains and halted physical retail operations. Strict lockdowns further dragged on the firm’s earnings as concerts, merchandise sales, and video shoots were indefinitely delayed, the company added.
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Warner Music is the world’s third-largest label with a collection of artists including Bruno Mars, Camila Cabello, Ed Sheeran, and Janelle Monae. Labels operating within the company include Atlantic, Spinnin, Warner Records, Parlophone, and Elektra.
Warner Music said it will not receive any of the offering’s proceeds and that parent firm Access Industries will offload the shares.
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