According to Sina US stocks, on Friday, July 26, Wanda sports, a sports event platform, landed on NASDAQ with the trading code 'WSG'. On the first day of listing, it broke at the opening price of US $6, down 25% from the issue price of US $8.
The stock ended down 35.5% to close at a session low of $5.16, up nearly 3.5% after hours.
According to the above report, Wanda sports is mainly engaged in sports related industries such as event broadcasting and stadium management. The main assets of this package and listing are Yingfang sports, world Triathlon company (weh, also known as WTC) and Wanda Sports China (WSC). Listed underwriters include Morgan Stanley, Deutsche Bank, Citigroup, Haitong international, CICC and CITIC CLSA, and become the 17th Chinese company listed in the United States this year.
The daily economic news once mentioned that on June 7, Wanda sports officially submitted a prospectus application to the U.S. Securities and Exchange Commission, but the financing scale has been reduced repeatedly within the following month, possibly because the market believes that its valuation is too high:
According to the prospectus updated on the 22nd, Wanda sports plans to issue 33.3333.34 million ADSS (American Depositary Shares), including 20 million newly issued ADSS and 13.3333.34 million ADSS sold by original shareholders. The issuance range is between us $12 and US $15 each, and the maximum fund-raising amount is US $575 million. However, just two days later, Wanda sports updated its prospectus again, planned to reduce the number of ads issued to 28 million, cancelled the ads sold by the original shareholders, reduced the issue price range to $9 ~ 11 per share, and the maximum fund-raising decreased by 38% to $308 million. The final issuance quantity and price of Wanda sports are lower than the original plan, and the maximum fund-raising amount is less than half of the plan of the 22nd prospectus. This IPO will issue 23.8 million ADSS at a price of $8 / ads, raising about $190 million.
According to the financial report data disclosed in the prospectus, Wanda sports had a total revenue of 877.2 million euros in 2016, 955 million euros in 2017 and 1.129 billion euros in 2018, with growth rates of 8.8% and 18.22% respectively; In the first quarter of 2019, the revenue was 246 million euros, a year-on-year increase of 4.9%.
In terms of profit, Wanda sports had a gross profit of 277 million euros in 2016, 331 million euros in 2017 and 365 million euros in 2018, with gross margins of 31.6%, 34.6% and 32.4% respectively. However, in the first quarter of 2019, the net loss was 8.636 million euros, and the gross profit margin was 24.5%; The company said that the main reason was the decline in the profit margin of spectator sports events due to the cyclical impact.
The daily economic news also mentioned that Wanda sports disclosed in its prospectus that part of the raised funds was used to repay the 364 day term loan of Morgan Stanley (Asia). The loan amounts to US $400 million with an annual interest rate of 11.5%. The remaining raised amount will be used for the company's strategic investment and general corporate purposes. Over the past two years, the company's debt ratio has exceeded 100% and decreased to 83.9% in the first quarter of this year.