Lucian Grainge, the chief executive of Universal Music, is in line for a bonus of £105mln after shares in the music group soared in value on their Amsterdam listing debut.
Priced at €18.50 per share, the shares initially jumped to €25.70, a gain of 39%, with Grainge predicting it was just the start for the business.
Analysts had expressed some reservation about how far the streaming boom that has driven Universal’s recent growth could go, but the opportunities for the group were many and widespread he told the Guardian.
“The penetration rates of digital services in some of the largest countries haven’t yet reached those of more mature markets, so there’s plenty of headroom in those key markets.”
That is before the expected growth in voice-controlled speakers, connected cars, social media, gaming, fitness, he added.
“This wave is taking place on a variety of platforms – some of which were not even on the radar just a few years ago.”
Big winners from the float have been Bill Ackman’s Pershing Square hedge fund which has a 10% stake and shareholders in majority owner French group Vivendi, which is spun its 60% holding out to its shareholders as part of the IPO.
Another big winner is the Chinese conglomerate Tencent Holdings, which has a 20% stake and has needed some good news after being battered by the recent tech clampdown in China.
Universal’s roster of artists includes huge names such as Taylor Swift, Ariana Grande, Lady Gaga, Justin Bieber and the Rolling Stones among its artists as well as controlling the back catalogues of The Beatles and Bob Dylan.
Shares were trading at €25.20 early afternoon, valuing the business at €45.7bn.