Warner Music Group (WMG) - Get Report held its IPO on Wednesday, June 3. The record company was planning an IPO in March, but pulled it amid the coronavirus pandemic and the market's severe downturn. It also postponed its IPO for one day in support of "Blackout Tuesday."
Wednesday's IPO listed 77 million class A shares on the Nasdaq. Each share was priced at $25. Warner Music is using the ticker symbol.
On its first day of trading, on Wednesday afternoon, the stock opened at $27.
Overall, the company is valued at more than $13 billion. The deal is the biggest IPO of the year.
The entertainment company has musicians like Ed Sheeran, Bruno Mars, and Cardi B on its books. Its Recorded Music division includes labels such as Asylum, Canvasback, Elektra, Erato, First Night, Parlophone, Reprise, Rhino, Warner Classics and more. Its catalog includes over 1.4 million musical compositions.
While the timing is certainly interesting to say the least as a majority of artists remain inactive amid the pandemic, Jim Cramer says the IPO could signal the opening of the equity market as Wall Street begins to reopen with the rest of the U.S. economy.
Watch his full take on StreetLightning.
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