The biggest MMA promotion in the world, UFC, could go public later this year and launch an IPO.
An article published by Athletic cited information provided by two sources who requested to remain anonymous. The sports news outlet revealed that UFC’s parent organization, Endeavor Group Holdings, had filed confidential documents for the initial public offering with the Securities and Exchange Commission.
Details of the draft prospectus, such as the sought market capitalization, volume and price of the shares, are not known. Endeavor has not yet made an official announcement of the move.
The launch of the IPO would be a milestone for UFC following record sales of $ 4.02 billion in 2016 and here’s everything you need to know about the company’s IPO.
Any of the three owners can apply for the UFC IPO
Silver Lake Partners, Kohlberg Kravis Roberts and MSD Capital, led by WME IMG, are the primary owners of the UFC.
From August 18, 2021, one of the three owners can exercise a right of request for the UFC to become public. However, UFC IPO can only be launched after Endeavor’s IPO.
UFC IPO is actually the IPO of its parent company which owns many other businesses besides the promotion.
Estimated to have an annual income of more than $ 3 billion, the parent company of the UFC Endeavor Group Holdings is a global entertainment conglomerate.
They also own talent firms like IMG and Willian Morris and produce films and events like the Miss Universe pageant.
The documents filed with the Securities and Exchange Commission relate to the public offering of Endeavor shares, not the UFC.
Endeavor first filed for IPO in 2019
Endeavor Group Holdings first sought to launch its IPO in 2019. Over 25% of Endeavor’s value comes from its ownership of UFC.
According to Forbes, despite Mma is no longer considered a taboo, it has not yet become a mainstream sport. This raised concerns among investors about Endeavor’s growth prospects and the conglomerate subsequently pulled the IPO in September 2019 due to these concerns and market weakness.