The ticker symbol “MGM” will in all likelihood be trading on the New York Stock Exchange by Thursday. Metro-Goldwyn-Mayer’s $300 million stock offering is expected to go to market Wednesday, sources say — only a day or two after the initial target date.
Before then, MGM is believed to have decided to take its roadshow to Europe, with trips planned for London and Amsterdam today and Tuesday, due to strong European interest.
The extension may in part reflect the mixed reception the initial public offering got in the U.S., where investors were either warm to MGM’s story or totally uninterested.
As one source close to the deal said, “People fall out clearly on this thing” — they either understand MGM management’s pitch that the studio’s future is based on the strength of the library or else they don’t like film companies that are not diversified into other parts of the entertainment industry.
For those who like the story, the only question is the price on the deal. Whether MGM sells the stock at its target price of $20-$23 won’t become clear until just before pricing, when the roadshow returns from Europe late Tuesday. Any problems may force MGM to cut the price a couple of dollars, Wall Streeters say.