Warner Music IPO coming despite coronavirus

World’s third-largest music recording label in March delayed plans to kick off one of year’s larger IPOs

Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.

Continue Reading Below

(Reuters) - Warner Music Group said on Thursday it received an approval to list its shares on the Nasdaq stock exchange in what could be a rare initial public offering after the COVID-19 pandemic forced a number of companies to put their plans on hold.

The recording label, home to artistes including Cardi B, Ed Sheeran and Bruno Mars, said on Thursday it had been approved to list its Class A common stock under the symbol "WMG".

Warner, which filed for an initial public offering in February, was bought by billionaire Len Blavatnik’s investment group, Access Industries, for about $3.3 billion in 2011.

WHEN WILL NYSE REOPEN?

The world’s third-largest music recording label had in March delayed it plans to kick off the debut - set to be one of the year’s larger IPOs, raising in excess of $1 billion, Reuters reported, citing people familiar with the matter.

The health crisis has rocked global capital markets in the past two months and slammed the brakes on IPOs. In January, buyout firm Carlyle Group Inc (CG.O) delayed the U.S. IPO of its German specialty chemicals group Atotech.

Other companies that have put their IPO plans on ice include Cole Haan Inc and 58 Home.

CORONAVIRUS WON'T STOP DRAFTKINGS FROM GOING PUBLIC: CEO JASON ROBINS

Warner posted a net loss of $74 million in the second quarter ended March 31, compared with a profit of $67 million a year earlier, its filing document showed.

Warner said in a regulatory filing the virus outbreak had hurt physical revenue streams, citing disruptions in manufacturing and physical supply chains, including mandated closure of physical retailers.

DEAL TO SELL VICTORIA SECRET IS CALLED OFF

“The requirement that people stay in their homes has impacted our business in other ways, such as, making it impossible to hold live concert tours, adversely impacting our concert promotion business and the sale of merchandise,” it said.

CLICK HERE TO READ MORE ON FOX BUSINESS