By Dhirendra Tripathi
Investing.com – Warner Music stock (NASDAQ:WMG) slipped nearly 3% Wednesday as parties related to Access Industries, an institutional shareholder, come to sell 0.45% equity of the company.
The Access affiliates will sell Warner shares at $45 apiece, the closing rate as of Tuesday. The stock had risen nearly 12% Tuesday, boosted by listing of rival Universal Music (AS:UMG) which soared 43% on its debut.
At $45, the sale of 2.34 million shares is worth $105.3 million.
Morgan Stanley (NYSE:MS), the underwriter to the issue, proposes to sell the shares from time to time in one or more transactions.
Warner Music will not sell any shares nor receive nay proceeds from the sale. The exercise is expected to close Friday.
A large sale tends to depress share prices in the short-term as institutions hold equity for longer periods. As shares exchange hands, availability increases as more hands come to hold the shares.