The IPO of UFC's parent company Endeavor Group Holdings has begun trading on the New York Stock Exchange under the symbol 'EDR'. Starting April 29th, the entertainment giant is aiming to raise $511 million by offering 21.3 million shares.
It will raise another $1.8 billion through institutional investors. Endeavor's stock was priced at $24 at the time of the initial offering and it opened at NYSE at $27 with a healthy gain of 7%.
Endeavor Group Holdings is an international sports and entertainment conglomerate that owns William Morris talent agency and sports and modeling agency IMG apart from the UFC.
In an article in March, Sportico reported that Endeavor had filed confidential paperwork with the Securities and Exchange Commission for the launch of its IPO. The company previously sought to launch its IPO in September 2019.
However, the IPO was pulled out a day before its launch due to weakness in the IPO market and investors' concerns surrounding the growth of the UFC, which forms about 25% of Endeavor's total valuation.
Endeavor is seeking full control of the UFC
Endeavor led a group of institutional investors that purchased the UFC for $4.05 billion in 2016. Silver Lake Partners, Kohlberg Kravis, and MSD capital became the primary owners of the UFC following the purchase.
Endeavor already owns 50.1% of the UFC. According to the paperwork filed with the Securities and Exchange Commission in February 2021, Endeavor and UFC finalized the deal for the former to become 100% owners of the MMA promotion.
The filing stated that Endeavor was supposed to raise $1.75 billion to buy out the UFC before the launch of its IPO. The amount raised from the IPO was also to go towards the purchase. With the IPO successfully launched, Endeavor is ready to tap into the UFC's full potential.
What the deal means to the UFC's brand identity and its structure is unknown at the moment. However, there has been no update about the same from either Endeavor or the UFC.