Report: Endeavor Looking To Raise Around $600 Million From Upcoming IPO

It was revealed a few months ago that Endeavor, which is the parent company of the UFC, is entering the stock market as they become a publicly traded company.

A report from the Los Angeles Times (via Bloody Elbow) is stating that Endeavor is looking to get an estimated share price of $30 to $32, with the expected amount of shares altogether being 19,354,839. If the company gets exactly what they want and that gets combined with their total earnings, it would mean they have raised approximately $600 million. 

Variety is also reporting that Endeavor is planning on taking $500 million from that potential $600 million and putting that towards their massive debt load. The report from Variety also states that approximately $46 million is going to be put towards general business funds.

There has been some cautionary warnings towards the Endeavor stock, as Analyst Todd Juenger stated that a “shareholder will need to be willing to accept an extraordinary high amount of debt and very tight interest coverage.” Juenger also states that Endeavor has a “questionable ability to de-lever organically, depending on one’s confidence in revenue growth and operating leverage.”

Although the UFC is a part of the Endeavor umbrella, it would have little to no control over what happens when the company becomes publicly traded in the near future.