Shares of Common Music Group soared greater than 35 % within the firm’s inventory market debut in Europe’s largest itemizing of the 12 months to this point.
The world’s greatest file label, which represents musicians like Woman Gaga, Taylor Swift and Billie Eilish, traded round $29.32 a share Tuesday morning, which was greater than 35 % above the reference worth of $21.70 per share.
The rally offers Common, which listed on the Euronext Amsterdam inventory trade, a valuation of practically $55 billion.
In June, the corporate’s father or mother, French media group Vivendi, received the backing of shareholders to spin off Common, which is taken into account its crown jewel. Because of this, 60 % of Common’s shares will go to Vivendi shareholders— with Vivendi boss and controlling shareholder Vincent Bolloré nabbing a stake value roughly $6.9 billion.
Different huge winners from the Amsterdam itemizing embody hedge fund billionaire Invoice Ackman, whose fund Pershing Sq. owns a ten % stake, and China’s Tencent, which owns a 20 % stake in Common.
Common chairman and CEO Lucian Grainge can even get bonuses linked to the itemizing that, in response to Reuters, may add as much as as a lot as $400 million.
Common, which is the most important music firm on this planet, dominating rivals Warner Music Group and Sony Music, owns and runs companies in additional than 60 international locations.
The label, which boasts of up to date artists like Ariana Grande and Drake, in addition to a again catalogue from iconic musicians like The Beatles and Bob Dylan, has a blockbuster portfolio that’s enticing to traders.
What’s extra, in recent times, the corporate has centered its technique on the booming music streaming sector, which it expects to spice up royalty income and income for years to come back.