How Universal Music Stock Did In Its First Week | Billboard

Shares opened at 25.25 euros ($29.59) earlier than peaking at 26.45 euros ($30.99) -- a $56.2 billion market capitalization -- and ending the day at 25.10 euros ($29.41). Over the week, the share value dropped barely and traded from a low of twenty-two.74 euros ($26.65) to 25.25 euros ($29.59). By Monday (Sept. 27), UMG’s fifth buying and selling day, shares closed at 23.65 euros ($27.71), giving the corporate a 42.9 billion euros ($50.3 billion) market capitalization.  

The general public itemizing’s success wasn’t a shock, nevertheless.  Previous to UMG’s itemizing, most securities analysts that cowl Vivendi believed the corporate was price round 39 billion euros ($45.7 billion) to 42 billion euros ($49.2 billion), or roughly 21.50 euros ($25.21) to 27.15 euros ($31.81) per share. If UMG shares traded round these costs through the first week of buying and selling, the corporate’s market capitalization -- the entire worth of all excellent shares -- would have agreed with analysts’ calculations. Following the itemizing, 5 analysts who initiated protection of UMG had a mean value goal of 27.50 euros ($33.22), 17% above Friday’s closing value.  

Nonetheless, comparatively few shares have traded palms to date and UMG’s share value may swing because the market positive aspects liquidity. Over the primary 4 days, UMG’s buying and selling quantity was 75 million shares out of 1.8 billion shares excellent and 756 million accessible for buying and selling. (Compared, when Warner Music Group went public in June 2020, its proprietor, Entry Industries, floated 70 million shares. Buying and selling quantity on the primary day alone was 35 million -- half of all shares in the marketplace.) A share value that is still effectively over 18.50 euros ($21.64) may entice way more of the brand new UMG shareholders to promote within the coming weeks.

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