SFX Entertainment prices IPO at $13 a share; company valued at $1.05 billion
Electronic Dance Music enters a new beginning as SFX Entertainment tests the waters of Wall Street. If you recall, SFX was founded last year by media mogul Robert Sillerman who claimed to be willing to spend 1 billion dollars to acquire dance industry assets. Priced at $13 a share, SFX’s IPO raised $260 million dollars valuing the company at $1.05 billion. SFX has sold 20 million shares, much higher than the 16.7 million it had originally planned to sell. UBS, Jeffries, and Deutsche Bank are currently managing the offering.
Funds raised from the IPO will allow SFX to grow further and complete a string of acquisitions in its pipeline. Last year, SFX recorded $239 million in revenue, with reported losses of $68 million. The next few weeks will give a strong indication if investors actually believe in the long term standing power of dance music. The two deaths at Electric Zoo give reason for concern of the future of larger scale music festivals in the US, however, TomorrowWorld’s inaugural event in Chattahoochee Hills in late September went on without any serious health related incidents.
Keep your eyes on DA as we will provide extensive coverage of any news surrounding SFX’s IPO.
Via: New York Times