Music festival producer SFX Entertainment Inc saw its share price dropped in early trading just after raising USD260 million in its public listing. The company, whose shares are currently listed on the Nasdaq bourse, fell 2.6% to USD12.66 today.
According to a earlier statement issued by SFX, 20 million shares were sold by the musical festival producer at USD13 each. This was an increase in price and volume as SFX initially offered 16.7 million shares for sale to be priced around the USD11 to USD13 price range.
Proceeds from the IPO would help fund SFX's acquisition plans in order to compete with rival Live Nation Entertainment Inc. Live Nation is deemed the biggest concert promoter in the world. SFX would be aiming to beat Live Nation with four strategic buyouts in companies German music event producer I-Motion GmbH Events & Communication, ID&T Business, Australian festival producer Totem Onelove Group and Electronic Zoo producer Made Event LLC.
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