By Joshua Franklin and Noor Zainab Hussain
(Reuters) – Warner Music announced on Tuesday that it is looking to sell up to $ 1.82 billion in shares in an initial public offering that potentially will be the largest IPO in New York so far in 2020, as demand for new shares recovers after the Covid-19 pandemic has put a brake on many operations.
Warner Music, the third largest record label in the world and which has artists such as Cardi B, Ed Sheeran and Bruno Mars, set a price range of 23 to 26 dollars per share in the offer that will involve 70 million papers. At the top of the indicative range, the IPO will value Warner Music at $ 13.26 billion.
Warner Music, controlled by billionaire Len Blavatnik's Access Industries, is not selling any shares in the offering. The operation consists entirely of papers held by the current shareholders of the record company, a rarity in IPOs.
The company's IPO should have taken place in March, but the pandemic postponed plans amid the sharp drop in markets.
Pessimism, however, seems to be showing signs of reversal. Last week, insurance comparison site SelectQuote raised $ 360 million in an IPO that was above the indicative range.
Warner Music had a net loss of $ 74 million in the second fiscal quarter ended in March from a profit of $ 67 million in the same period last year.