Nine to float this Friday, sets market value under $2bn

Nine Entertainment Co will float on the Australian Securities Exchange this Friday, with a market capitalisation below $2bn.

The move has been foreshadowed across the media for some time, but has set an initial price of just $2.05, below predictions in The Australian it would be in the $2.10 to $2.15 range, giving it a value of $1.928bn, below its initial forecast.

That price will be offered to a range of international and local investors who took part in the initial bookbuild which has raised around $690m for the company, which was rescued from the brink of debt default just over a year ago by two US hedge funds, Oaktree and Apollo.

The price of shares values the company at about 8.3 times its earnings this year.

In a statement released this afternoon CEO David Gyngell said: “We are delighted by the strength of demand received for our IPO across both high quality domestic and international investors, with the offering multiple times covered at the Final Price. I look forward to welcoming our new shareholders.”

The company will be publicly listed from midday Friday, and trade under the code NEC.


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