Shares in Robert Sillerman’s electronic music holdings company SFX entertainment (SFXE) fell 9 percent after raising $260 million in their IPO today.
Bloomberg reports that the company, which now owns controlling stake in Beatport, ID&T, and more, sold 20 million shares for $13 each after offering 16.7 million shares for $11 to $13. By the time Sillerman and Afrojack (yes, Afrojack) rang the bell, the stock had plummeted a concerning 16 percent around midday before recovering to a loss of around 9 percent, falling a net amount of $1.11 to $11.89.
“The decline in the stock price is surprising given that the underwriters and company priced at the high end of the range,” Paul Sweeney, an analyst at Bloomberg Industries, said by email.
This could mean any number of things, but it doesn’t necessarily spell out trouble for SFX, as it’s not uncommon to see a poor IPO turn into a successful business eventually. This may be indicative of a market that’s snapping out of its hypnotic state of infatuous obsession with “EDM,” or it may be a sign of low faith in SFX’s starving-for-involvement newcomer persona. Check back for more updates.