There wasn't much to rave about on the first day of trading for electronic dance music promoter SFX Entertainment Inc.
Shares of SFX, founded by entertainment entrepreneur Robert F.X. Sillerman, fell $1.11, or 8.5%, to $11.89 on Wednesday, after its initial public offering.
The New York company sold 20 million shares at $13 a share, at the high end of its proposed range, raising $260 million in its IPO.
SFX competes with
"The IPO was designed to give SFX the financial muscle to outbid Live Nation when trying to acquire major producers and promoters of live events," said Sam Hamadeh, the founder and chief executive of PrivCo, in an email. "SFX's weak IPO reception will impact SFX's ability to use its hobbled stock to buy more music festival and other live events companies."
UBS Investment Bank, Jefferies and
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