IPO Focus -2-: Strong Retail Interest Seen In Ticketmaster 10/29/1996 Dow Jones News Service
(Copyright (c) 1996, Dow Jones & Company, Inc.)
Samblis , of Samblis Financial, said he expected few institutions to participate in Ticketmaster's IPO, and looked for a high number of trades of 2,000, 1,000 or fewer shares - especially in the aftermarket as
individual investors jump in.
'This is a very sellable deal,' he said. 'But it won't tell us anything about the overall strength of the IPO market - Ticketmaster is in a very stand-alone position.'
He said a few investors, apparently concerned with appearances, may stay away from the IPO because Ticketmaster has a near monopoly on the sale of tickets for popular entertainment. However, shrewd investors will brush such objections aside, realizing that Ticketmaster dominates the market because it's efficient and led by good management.
'I think the stock will do well,' Samblis said.
A few years ago, grunge rock group Pearl Jam charged that Ticketmaster was exercising monopoly control over the distribution of concert tickets. A federal investigation into the allegations was dropped last year.
Ticketmaster has announced plans to put its ticketing service on-line. Company officials have estimated that no more than 3% of ticket sales will be made on-line within the first three years.
Internet users will be able to purchase tickets to Broadway shows on the World Wide Web and view seating charts for selected shows. Within a year, customers purchasing tickets on the Internet will be able to see pictures of the stage taken from the seats they are considering for a show.
The lead underwriter is Allen & Co. Co-managers are Lazard Freres & Co. and Smith Barney Inc. The overallotment option is 1.1 million shares. The proposed Nasdaq symbol is 'TKTM.'
(END) DOW JONES NEWS 10-29-96
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