iHeart Readies Public Listing On NASDAQ
On Friday iHeart Media announced that it finalized terms for a direct stock listing on the NASDAQ exchange. iHeart is expected to go public on July 18th, which will complete it’s 17-month bankruptcy reorganization.
iHeart is choosing a direct listing route for its new stock, which means there won’t be a window for investors to buy in ahead of time. Instead iHeart will be able to release shares into the market at will. Of course, this also means iHeart is foregoing a windfall of new capital that goes with a traditional IPO.
It’ll be interesting to see how investors respond to iHeart 2.0. On one hand they might be wary, since the previous shareholders saw their investment get wiped out in the initial bankruptcy. On the other hand, iHeart can now operate at a profit since their debt has been reduced from $20B to $6B. I guess we’ll find out the The Street’s reaction in a few weeks.