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.
OMG, only 8.3 times, WTF is happening, OxForEx recently got over 20 times, and rea.group – is now one third of news corp….is nine this cheap, or a bargain….
My personal view, is that we are on a slippery down fall….akin to the GFC ….
seriously, ….
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Super and investment funds have to put their money somewhere. Nine does not have much upside until advertising revenues increase significantly but will still have to battle multiple digital platforms. Its current management is unlikely to carry it into any innovative, game changing revenues. Could be wrong but if there is a hiccup in the stock market it will trade below issue price. I’d be buying into Seven rather than Nine.
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Anyone in media land thinking of buying?
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i’m not 100% sure of this but i thought super and fundies will have to have nine in their portfolio as it will make up part of the overall index – they may not want to take it but they’ll have to take it…
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I doubt Steve media land will go near Nine. I had an investment adviser from a major firm recommend Fairfax as a buy at $3. His reasons were all Fairfax spin. I declined.
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