Just after Liz Hayes rang the bell at the Australian Securities Exchange building in Sydney on Friday, Nine Entertainment shares opened at $2.02, below their $2.05 issue price.
The stock traded as high as $2.07 after its midday open but ended down seven cents, or 3.4 per cent, at $1.98 -down 3.4 per cent – valuing the group at $1.84 billion and wiping $65 million from its market value.
The initial public offering of Nine – which also owns Ticketek and website publisher Mi9 – brought in about $640 million in new capital.
”We are delighted by the strength of demand received for our IPO across … domestic and international investors,” Nine chief executive David Gyngell said.
“It is satisfying to reach the end of this IPO process with a quality register of investors,” he said yesterday. “There was strong demand through the bookbuild process and the book was multiple times covered at the final price.”
David Gyngell also received a cash bonus of $2.5 million for taking the company to listing and an additional $4.5 million worth of performance rights.
Nine shareholders are said to include Billionaire investor George Soros, local fund managers AMP, Perpetual and Colonial First State.