Floating HMV valued up to £834m
12 April 2012
MUSIC and books retailer HMV is heading for flotation with its shares priced at between 190p and 220p to value the business at £834m at the mid-price. Chief executive Alan Giles will sell shares worth just under £1m and retain a stake worth about £3m. HMV's largest shareholders, EMI and venture capitalist Advent, are expected to reduce their stakes from just over 40% to about 20% each.
The share offer will be worth £525m in total with £150m going to existing shareholders and £375m being raised in new capital.
Advisers, including UBS Warburg and Schroder Salomon Smith Barney, will collect £24m, leaving HMV with £351m to refinance its bonds and pay down debts. The offer closes on Wednesday 8 May.
