Maybe Wall Street likes coke better than molly. Which brings us to SFX Entertainment, which is now the latest music-related IPO to crash-and-burn on day one.
SFX was hoping to cash in on the current popularity of Electronic Dance Music (EDM) in the states, but the stock slumped badly on day one. After a lukewarm taking, shares of SFXE dipped into the $10s before landing at $11.86 at the closing bell.
The company was started only a year ago by Robert F.X. Sillerman, who “corporatized the concert industry in the 1990s” and ultimately quintupled the price of your concert ticket. SFX bought up Beatport and the company behind TomorrowWorld, and is planning on using IPO funds to buy the company behind Electric Zoo.
The question is now is whether this dud can dance, and more inportantly, whether Wall Street sees SFXE as more than just a consolidated fad.