Wanda Sports IPO: What You Need To Know

Even as the Sino-U.S. trade issue hangs in a limbo, a Chinese sports event marketing company that is part of Dalian Wanda Group Co, a conglomerate owned by billionaire Wang Jianlin, is eyeing a U.S. listing.

The IPO Terms

Beijing-based Wanda Sports Group Company Limited has filed with the SEC to offer 33.33 million ADSs, representing 50 million Class A ordinary shares, in an IPO.

Of this, 20 million ADSs are to be offered by the company and 13.33 million by selling shareholders.

The company expects the offering to be priced between $12 and $15 per ADS.

At mid-point of the estimated price range, the size of the offering about $450 million.

The company's shares have been approved for listing on the Nasdaq under the ticker symbol WSG.

Morgan Stanley, Deutsche Bank Securities and Citigroup are the lead underwriters for the offering.

The Company

Wanda is a global sports events, media and marketing platform with intellectual property rights, long-term relationships and execution capabilities for creating value for all stakeholders, including rights owners, brands, advertisers, athletes and fans. It owns or has contractual rights to an extensive portfolio of global, regional and national sport properties, and does events operation, media production and distribution and sponsorship and marketing.

The Finances

Wanda reported revenues of $1.29 billion for the fiscal year 2018, up 18% year-over-year. For the quarter ended March 31, the company reported 5% revenue growth to $275.78 million.

The company reported a 31.5% drop in its fiscal year 2018 net profit to $61.88 million. For the March quarter, it reversed to a loss of $9.70 million.

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