Universal Music Group Surges Over 30% on Market Debut

Shares of Universal Music Group are up over 33% in the Amsterdam market debut as investors decided to back the world’s biggest music label.

The company hit a market capitalization of nearly 47 billion euros ($55 billion) as shares soared from the opening price of 18.50 euro per share.

The music giant made its public debut after France’s Vivendi (OTC: VIVHY) decided to spin off UMG into a new company. 60% of UMG’s shares will go to Vivendi shareholders, while Vivendi will only own a 10% stake in the new company while UMG accounted for around three-quarters of Vivendi’s profits.

Chinese entertainment giant Tencent owns a 20% stake, while William Ackman’s hedge fund Pershing Square has a 10% stake. French billionaire Vincent Bollore received a stake worth around 5.9 billion euros.

On the other hand, Vivendi share price plunged over 13% after losing its biggest asset.

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