SFX Entertainment Inc. (NASDAQ: SFXE) held its initial public offering (IPO) Wednesday morning, selling about 3.8 million shares at an IPO price of $13, the top of its proposed range of $11 to $13 a share. Shares have since dropped below the lower end of that range.
SFX was founded by Robert F.X. Silverman and focuses exclusively on concerts and festivals devoted to electronic dance music (EDM), or what the company calls electronic music culture (EMC). In its IPO filing, SFX claimed that the market for EDM will total $4.5 billion in 2013 and that the five largest EMC festivals grew at a pace of 41% annually from 2007 to 2012, while the overall North American concert market grew by just 2%.
Electronic dance music clubs have become a fixture in Las Vegas, where casino and resort owners like Wynn Resorts Ltd. (NASDAQ: WYNN) operate massive dance clubs that can haul in revenues of up to $1 million a night from as many as 10,000 revelers. In a recent article in The New Yorker, one club owner said, “Half of [Wynn’s] profit comes from the night clubs. Gambling is an amenity now.” A Wynn spokesman disputed the numbers, but did not offer accurate ones.
Shares of SFX are trading at around $10.75 midway through the lunch hour on Wednesday. The stock’s high for the day was $13.39.
“The Next NVIDIA” Could Change Your Life
NVIDIA has returned 250-fold in the past 10 years as artificial intelligence took off.
But if you missed out on NVIDIA’s historic run, your chance to see life-changing profits from AI isn’t over.
The 24/7 Wall Street Analyst who first called NVIDIA’s AI-fueled rise in 2009 just published a brand-new research report named “The Next NVIDIA.”
The report outlines key breakthroughs in AI and the stocks ready to dominate the next wave of growth. The report is absolutely free. Simply enter your email below
By providing your email address, you agree to receive communications from us regarding website updates and other offerings that may be of interest to you.
You have the option to opt-out of these emails at any moment. For more information, please review our Disclaimer and Terms of Use.