All of the shares being sold are being offered by two entities — Access Industries and AI Entertainment Holdings — controlled by Len Blavatnik, who will receive all the revenue from the $1.925 billion stock sale with none of the proceeds going to the company. Blavatnik and other insiders will still retain an additional 433 million class B shares, of which the investment banks underwriting the stock offering have a 30-day option to purchase an additional 11.55 million shares.
According to press reports. Tencent, the giant Chinese internet services and entertainment company, was expected to be an anchor investor buying a $200 million stake in the WMG IPO. Yet, with two classes of shares, WMG will be what's referred to as a controlled company, which means that the Class A shareholders will have little to no influence on how the company is run.
With the WMG stock price being announced this morning, that means that at some point after the 9:30 opening of trading, the company’s shares will be officially listed on the Nasdaq stock exchange and its shares will begin trading, with Wall Street expected to watch closely to see what price its shares will close out, up or down from the $25 per share price.
As the underwriters initially priced the offering at a $23 to $26 price range with the final $25 pricing at the upper end, that suggests that the offering was at least fully-to-possibly oversubscribed by investors, which points to plenty of demand for the shares that could mean that the stock closes at a higher price in its first day of trading. Offsetting that pricing speculation is how the stock market will react to yet another day of civil unrest.
Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. LLC are the lead underwriters for the offering, with the sale of shares being offered through a syndication of investments banks.