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Warner Snare US$1.9B IPO After Streaming Boom

Warner Music Group has notched the biggest US IPO listing for this year, after raising over $1.9 billion in an IPO which commentators claim shows how streaming has transformed the music industry.

The music label’s shares opened at US$27 after initially being priced at US$25 – notching a market value of US$13.8 billion.

Shares skyrocketed as much as 23% to US$30.85.

The company announced an IPO of 77,000,000 shares up from 70,000,0000 Class A common stock.

The news sees Warner become the only one of the “big three” music companies to trade publicly as a stand-alone entity, versus Sony Music Entertainment and Universal Music Group.

Commentators claim Warner is riding the ‘streaming wave’, which has proven to be a major revenue source for record labels and publishers.

In April, the company saw a 12% jump in music streaming revenues.

Digital revenues reportedly contributed over half the company’s 2019 revenues of US$4.5 billion – the biggest share from streaming.

Warner owns record labels and a music publishing company with catalogues boasting music from many pop culture icons including Dua Lipa and Lizzo, plus classic as Neil Young and Prince.

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