Endeavor to launch IPO this Friday

September 23, 2019

Endeavor Group Holdings intends to launch its IPO this Friday, September 27th.  The company plans to price the IPO at $30-$32 per share trading on the New York Stock Exchange under the EDR ticker symbol.

The company is backed by Silver Lake among other underwriters and is targeting an $8 billion valuation per The Financial Times.  It is anticipated that the IPO will raise $712M.    The company plans to offer 19.4 million common shares with the underwriters having the option on 2.9 million more.

As many know, EDR owns the Ultimate Fighting Championship.

The launch date comes ahead of October as Goldman Sach strategists warned of “high October volatility.”

Payout Perspective:

In an amended SEC filing last week, Endeavor brought in over $2 billion in revenue which shows an improvement from $1.5 billion in the previous years.  It also showed narrowing of financial losses.  One might assume that the UFC is one of the sports properties that many investors will scrutinize when assessing EDR stock.  The company has done will in increasing its revenue largely from its media deal with ESPN which has been a boon for both the promotion and ESPN vis a vis its digital platform.

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