Endeavor has also established a private placement, along with the pricing and details of its initial public offering, which it hopes will produce $ 1.8 billion and give it full control of the UFC mixed-martial arts circuit.
The timing of the offering is not strongly determined, but SEC filings of today’s updated details indicate that Endeavor management is about to start a roadshow to pitch to investors. WME, the parent company of IMG and a series of content assets, launched their previous IPO at the 11th hour in 2019. Market conditions and other factors may have reduced its likelihood, the company concluded. The IPO market overall has, in the meantime, strongly rebounded, and Endeavor has also resolved a pressing conflict with the Writers Guild of America over packaging.
In the filing, Endeavor said it plans to offer 21.3 million shares, priced from $ 23 to $ 24 per share. The offering is estimated to be valued at $ 439 million, including several restricted shares destined for management. Shares of Endeavor Group Holdings will trade on the New York Stock Exchange under the ticker symbol EDR.
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Separately, the company is aiming for a private placement that would produce $ 837 million for Endeavor to take full control of the UFC. An additional $ 950 million will be designated as working capital, bringing the total placement to a value of $ 1.8 billion.
Endeavor led a group of private investors in the $ 4 billion acquisition of UFC in 2016. While the circuit has steadily grown, especially among young fans and eye-catching TV and pay-per-view deals, the transaction has been added to Endeavor’s debt load.
Last month, Endeavor formally resumed its IPO search, beginning its paperwork but providing some financial details. It revealed that it had included Elon Musk on its board of directors.
The firm led by the Eir Emanuel acknowledged huge losses due to the coronovirus epidemic, posting a net loss of $ 625.3 million in 2020. Emanuel wrote in a letter in the filing, “As a year-to-date challenge by 2020, it has reduced the strength, creativity and resilience of our people, who have resurfaced time and time again.” “We made tough decisions, but worked as a team to find creative solutions and position the business best for the future.”