'Rain on Me': Universal surges over 30% in smashing Dutch debut

Pershing Square Holdings

21/09/2021 09:49

(Updates share move, analyst comment)
    ** Shares in Universal Music Group (UMG)  UMG.AS , the
world's largest record label, surge 32% on their Amsterdam debut
    ** They were trading at around 25 euros in mid-morning
versus the IPO reference price of 18.50 euros, bringing its
market value to around 45 billion euros ($55.10 billion)
 urn:newsml:reuters.com:*:nL1N2QM1FH
    ** The IPO price valued the company at around 33.5 billion
euros
    ** "The immediate reaction is very strong," said AlphaValue
analyst Jean-Michel Salvador, adding that it seemed likely the
group's main investors would hold on to their stakes as
Universal enjoys growth trends across the industry
    ** The label, behind singers Lady Gaga and Ariana Grande and
their hit song "Rain on Me," is benefiting from an industry
rebound underpinned by booming streaming revenues and a recent
surge in sales of vinyl records and CDs  urn:newsml:reuters.com:*:nL1N2QG0O5
    ** Bernstein's Matti Littunen says opening performance
suggests a 25% premium to only listed peer Warner Music Group
 WMG.O  on NTM EV/EBITDA multiple
    ** "No sign of a European discount here," Littunen adds,
saying strong returns on paper mean there is less immediate
pressure for a dual U.S. listing
    ** Vivendi will retain 10% of Universal after the
transaction, while a Tencent-led  0700.HK  consortium will hold
20% and U.S. investor Bill Ackman's Pershing Square Holdings
 PSH.AS  10% 

($1 = 0.8530 euros)

 (Reporting by Sarah Morland)
 ((sarah.morland@tr.com
mailto:sarah.morland@thomsonreuters.com))