Nine float ramps up to catch Cup fever
It is one of the key details of the Nine float revealed in meetings between investors on Monday following the company's annual meeting. The 80-odd shareholders were also given an outline of the share facility that will allow them to sell their stock into the float, scheduled for the week beginning December 9.
Up to $1 billion worth of shares may be available for the public, although investors were told $500 million to $750 million is a more likely range for the sale.
This week, the investment banks leading Nine's float will market the initial public offering to institutional investors to get an indicative price range for the IPO, which will be taken back to Nine's investors to decide how much they are willing to sell.
By raising $275 million via new shares in the float Nine plans to pay down its debt to around $600 million, about twice the company's forecast earnings before interest, tax, depreciation and amortisation (EBITDA) for the current financial year.
The final price of the sale will determine how many new shares are issued to pay down debt, but it is expected to be around the $120 million mark.
The market's appetite for Nine's shares will then determine the overall size of the sale to the public and how many current shareholders can cash in as part of the IPO.
Details of how long current investors will need to keep their remaining shares in escrow is still being discussed.
Frequently Asked Questions about this Article…
The Nine Entertainment float refers to the company's initial public offering (IPO), where shares are made available to the public. This is significant as it allows Nine Entertainment to raise capital, pay down debt, and provides an opportunity for investors to own a part of the company.
The Nine Entertainment IPO is scheduled for the week beginning December 9, following the lodging of the prospectus with the corporate regulator on November 4.
Nine Entertainment is looking to raise between $500 million to $750 million through the IPO, with up to $1 billion worth of shares potentially available to the public.
Nine Entertainment plans to use the funds raised from the IPO to pay down its debt to around $600 million, which is approximately twice its forecast earnings before interest, tax, depreciation, and amortisation (EBITDA) for the current financial year.
The final price of Nine Entertainment shares will be determined by the market's appetite for the shares and the indicative price range set by institutional investors during the marketing of the IPO.
Investment banks are leading the Nine Entertainment IPO by marketing it to institutional investors to establish an indicative price range, which will help determine how much current shareholders are willing to sell.
Yes, current shareholders will have the opportunity to sell their stock into the float, depending on the market's appetite for Nine's shares and the overall size of the sale to the public.
The timing of the Nine Entertainment IPO around the Melbourne Cup is significant as it leverages the heightened media attention and public interest during this period, potentially increasing visibility and interest in the IPO.
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