JPMorgan Chase – Endeavor Raises $511 Million in IPO at Top of Range
(Bloomberg) — Endeavor Group Holdings Inc., the entertainment and Hollywood talent company, raised $511 million in a U.S. initial public offering in its second attempt to go public.
The company sold 21.3 million shares Wednesday for $24 apiece, according to a statement confirming an earlier Bloomberg News report. The company, based in Beverly Hills, California, had marketed the shares for $23 to $24.
Endeavor also is raising $1.8 billion from institutional investors in a private placement, according the company’s filings with the U.S. Securities and Exchange Commission. Investors participating in the placement include KKR & Co., Coatue Management, Elliott Investment Management and Silver Lake, the company said in the filings.
The company has a market value of about $6.1 billion based on the outstanding shares listed in its filings.
Endeavor, led by Hollywood mogul Ari Emanuel, owns the UFC sports league and operates events and talent businesses. It said it will use part of the proceeds from the IPO and private placement to buy shares from UFC holders.
The company will have five classes of stock and Emanuel will have 17% of the voting power after the offering. Silver Lake will control more than 68% of the voting power, Endeavor said.
On a pro forma basis, Endeavor had a net loss of about $992 million on revenue of $3.48 billion in 2020, according to its filings.
Endeavor filed to go public in 2019 before shelving that effort, citing unfavorable market conditions.
The current offering was led by Morgan Stanley, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Deutsche Bank AG. Endeavor’s shares are expected to begin trading Thursday on the New York Stock Exchange under the symbol EDR.
(Updates with statement in second paragraph)
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