Universal valued at $ 39 billion before listing in Amsterdam, Vivendi setting a reference price of 18.50 euros per share


We’re less than 24 hours from Universal Music Group’s Amsterdam stock market debut – and now we have an official guide to valuing the company ahead of its much-anticipated IPO.

As first reported by Reuters, a statement released by Euronext today (September 20) indicates that the “technical reference price” of UMG shares is € 18.50 (approximately $ 21.70) per share.

This price was communicated to Euronext by UMG’s current parent company, Vivendi, based in Paris. According to the press release, the price was reached “after consultation with the listing agent and financial advisers.”

An IPO at 18.50 euros per share would value UMG at nearly 33.5 billion euros, or about 39 billion dollars.

However, the benchmark price of a company about to go public is just that: a rough guide, albeit an official one.

We have a useful recent example of how such things can change: Last summer, Warner Music Group set a pre-market price for its Nasdaq IPO at $ 25 per share.

Ultimately, WMG opened on the stock exchange on June 3 at $ 27 per share and closed its first day at $ 30.12 per share, some 20.5% above its initial price.

UMG’s parent company, Vivendi, is preparing to sell 60% of Universal to Euronext Amsterdam tomorrow (September 21).

After the listing in Amsterdam, the ex-president of Vivendi Vincent Bolloré (via his companies) will be UMG’s second shareholder with 18%.

A consortium led by Tencent will own 20%, while Vivendi and Pershing Square Holdings Ltd will each hold 10% respectively.

In a pre-IPO prospectus released last Tuesday (September 14), UMG noted that “for illustrative purposes” the recent acquisition of 10% of the company by Pershing Square suggests that Universal would have a approximate market capitalization of 33 billion euros on trade date.

In addition to revealing details of the company’s business risks, executive rewards, historical financial information and earnings forecasts, UMG’s pre-IPO prospectus also revealed details of the post board. -IPO of the company.

The company’s new board of directors includes Sir Lucian Grainge, who is Chairman and CEO and Executive Director, and Vincent Vallejo, Deputy CEO, Managing Director and Executive Director of UMG.

The board also includes James Mitchell, senior executive vice president and chief strategy officer of Tencent Holdings Limited and a director of Tencent Music Entertainment Group, listed on the New York Stock Exchange.

Today’s update follows last month’s announcement, revealed by Vivendi, that Pershing Square Holdings (PSH), led by billionaire Bill Ackman, will control 10% of UMG’s share capital after the quoting.

Before the Pershing deal, Vivendi also sold 20% of UMG to a consortium led by Chinese Tencent, for a valuation of 30 billion euros for UMG.Music trade around the world

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