AMBER VERNETTI WRITES – Ready for a comeback faster than Sylvester Stallone in Rocky III? Nine Entertainment certainly is.
Barely a year after its near bankruptcy, Nine Entertainment Co., one of Australia’s leading media groups, plans to release an initial public offering (IPO), as announced early last week. With this IPO, the corporation aims to collect around $697.3 million (the equivalent of $660 million in US dollars) in order to neutralize outstanding debt and give funds back to current investors as well as establish an initial market capitalization of $2.2 billion ($2.09 billion in US currency).
Nine will offer 125 million new shares and 179.7 million standing shares to the public at $2.05 to $2.35 per share. It is estimated that Nine Entertainment will raise up to $294 million (in Australian dollars) as a result of the buying and selling of new shares. The company overall is valued at $2.77 billion Australian.
David Gyngell, Nine Entertainment’s CEO, said, “We are excited about the initial public offering and providing new shareholders with exposure to our leading integrated portfolio of complementary media businesses.” According to Gyngell, a listing with the Australian Securities Exchange will “continue [its] strong momentum and consolidate [its] position as a leading free-to-air TV network in Australia,” thus preserving Nine Entertainment’s position within the media industry and promoting growth of the Nine Events business.
According to Bloomberg, by the end of the financial year, Nine Entertainment’s expected profit will climb from $136.7 million from the previous year to $139.5 million. The company’s shares will be assessed and priced on December 5, with stock buying and selling beginning the following day just in time for the holiday shopping season.