By Olivia Bugault

The reference price for Universal Music Group's shares has been set at 18.5 euros ($21.7) apiece, stock market operator Euronext NV said Monday, ahead of the company's trading debut in Amsterdam, Netherlands on Tuesday.

At that price, with 1.8 billion shares outstanding, the world's largest music company--which is being spun off from French media conglomerate Vivendi SE--would have a valuation of about EUR33.5 billion, equivalent to $39.3 billion.

Reference prices typically don't indicate how the stock will trade but act as a guide to inform the public of past private trading activity.

When UMG starts trading, Pershing Square Holdings Ltd. and Vivendi will both hold a 10% stake in the company, while a conglomerate led by Tencent Holdings Ltd. will have a 20% stake. The rest will be distributed to Vivendi's shareholders.

UMG said in August that it was targeting revenue growth of more than 10% this year, and that it was expecting earnings before interest, taxes, depreciation, and amortization to grow more than 20%.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

September 20, 2021 12:59 ET (16:59 GMT)

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