(Hypebot) — UPDATED: Universal Music Group stock shot up almost 40% in the first hours of trading Tuesday, following its IPO.
By mid-day on the Amsterdam exchange where UMG was trading, the stock settled in at about 35% above the IPO price. Now trading above $25 per share, UMG’s valuation had grown to more than $52 billion, up from an IPO valuation of $39 billion USD.
This makes UMG the biggest European IPO of 2021. No new cash was raised in the IPO.
“Today’s listing marks an exciting milestone in UMG’s storied history, reflecting our position as the world’s leading music-based entertainment company and our deep commitment to our amazing artists, songwriters and partners,” said Sir Lucian Grainge, Chairman and CEO of UMG.
Grainge is reported to be as much a $150 million richer thanks to today’s IPO adding to annual compensation that is said to have topped $60 million last year.
Big winners from today’s spinoff from Vivendi include U.S. hedge fund billionaire William Ackman and China’s Tencent as well as Vivendi’s controlling shareholder Vincent Bollore, according to Reuters.
Bruce Houghton is Founder and Editor of Hypebot and MusicThinkTank and serves as a Senior Advisor to Bandsintown which acquired both publications in 2019. He is the Founder and President of the Skyline Artists Agency and a professor for the Berklee College Of Music.