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UMG Files for U.S. Listing, Potential for Major Shareholder Sale
Worldwide Music Group (UMG) has taken a meaningful step towards a U.S. stock market debut, submitting a draft registration statement to the U.S. Securities and Exchange Commission (SEC). This filing relates to a proposed public offering in the United States of ordinary shares currently held by certain shareholders. The exact number of shares to be offered and the price range for this offering have not yet been persistent.
However, it has been confirmed that Pershing Square Holdings, led by Bill ackman, holds the right to request a U.S.listing for UMG.This right is contingent upon a Pershing entity successfully selling at least $500 million worth of UMG shares as part of the listing.
Financial experts view a U.S. listing as strategically sound, citing the unparalleled size and liquidity of U.S. equity capital markets. Companies listed in the U.S. typically benefit from extensive analyst coverage and a broad investor following, presenting an prospect to enhance shareholder value.
Timing and Location of U.S. Listing Remain Undetermined
The precise timing and specific exchange for a U.S. stock market listing for UMG are still unclear. Bill Ackman stated late in 2024 that the company woudl exercise this right and achieve a U.S. listing “no later than some time next year.”
UMG has been working within this timeframe, indicating earlier this year that it would use commercially reasonable efforts to launch an underwritten offering for the sale of certain shares owned by pershing by September 15, 2025. This timeline is subject to regulatory approval and prevailing market conditions.
The company also emphasized that any decisions beyond its contractual obligations under the Registration Rights Agreement will be made by UMG’s board of directors, based on an analysis of what is value-maximizing and in the best interests of all UMG shareholders.
Regarding the potential listing venue, the two primary candidates are the Nasdaq and the New York Stock Exchange (NYSE).
Analyst Outlook on U.S. Listing
Wall Street analysts are expected to offer more detailed commentary on UMG’s U.S.listing plans as further information becomes available.Doug Creutz, an analyst at TD Cowen, shared his insights in a report earlier this year.
Creutz highlighted that Pershing is obligated to sell at least $500 million of its $3.4 billion ownership stake, representing approximately a 7.5 percent interest. He believes that while the introduction of new shares into the market can typically create an overhang,the expanded investor base resulting from a U.S. listing is likely to more than offset any negative impact on share performance.
Creutz concluded that the U.S. listing is anticipated to improve the stock’s liquidity and enable investors who are restricted to purchasing shares in U.S.-listed companies to include UMG in their portfolios.
