Nine’s shares soar past initial float price

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Shares in Nine Entertainment Company (NEC) passed their price at the initial public offering for the first time this morning, with Perpetual taking a five per cent stake in the company.

The company listed on the Australian Securities Exchange in December for $2.05 per share, but the value plummeted to $1.97 at the close that day, and as low as $1.82 on December 12 wiping millions off the value of the company.

However, the stock has been steadily improving since then as the primary channel dominated TV ratings and revenue over December due to its coverage of Australia’s route of England in The Ashes, which helped them secure a 45.8 per cent share of revenues for free-to-air TV during the month.

This morning the share price went as high as $2.09 in early trading having opened at $2.02, and has settled at $2.08, a four per cent increase.

Investment fund Perpetual bought more than 50m shares in the company last Thursday, with the deal revealed to the ASX yesterday, giving the company 5.39 per cent of voting rights.



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