Venu Holding Corporation Announces Pricing of its Initial Public Offering

Rhea-AI Summary

Venu Holding (NYSE American: VENU), a hospitality and live music company, has announced the pricing of its initial public offering of 1,200,000 common stock shares at $10.00 per share, targeting gross proceeds of $12 million. The underwriters have a 45-day option to purchase up to 180,000 additional shares. Trading is expected to begin on NYSE American under 'VENU' on November 27, 2024. The company plans to use proceeds for business expansion, service development, venue openings, and working capital. ThinkEquity serves as the sole book-running manager for the offering, which is expected to close on November 29, 2024.

Positive

• Initial public offering raising $12 million in gross proceeds
• Strategic listing on NYSE American exchange enhances market visibility
• Potential for additional capital through 180,000 share over-allotment option

Negative

• Offering expenses and underwriting discounts will reduce net proceeds
• Potential dilution for existing shareholders
• No guaranteed success in planned business expansion and venue developments

Insights

Financial Analyst

This IPO represents a modest capital raise of $12 million at $10.00 per share, positioning Venu Holding as a new player in the competitive hospitality and live entertainment sector. The pricing and size suggest a cautious market entry strategy. The planned use of proceeds focuses on business expansion and venue development, indicating a growth-oriented approach.

The IPO structure includes a 15% over-allotment option, which could bring additional $1.8 million in proceeds. Trading on NYSE American, rather than the main NYSE board, reflects the company's smaller capitalization status. The timing of the listing in late 2024 suggests management is betting on continued consumer spending in experiential entertainment despite economic uncertainties.

Market Research Analyst

The luxury hospitality and live entertainment market presents both opportunities and challenges for Venu. Post-pandemic consumer behavior shows strong demand for experiential offerings, particularly in upscale segments. However, the relatively small IPO raise may limit the company's ability to compete effectively against established players with deeper pockets.

Key success factors will depend on location selection, concept differentiation and operational execution. The focus on multiple revenue streams through restaurants, entertainment and music venues could provide resilience, but also increases operational complexity. Market penetration in Colorado Springs could serve as a proof of concept for broader expansion.

COLORADO SPRINGS, Colo.--(BUSINESS WIRE)-- Venu Holding Corporation (NYSE American: VENU) (“VENU” or the “Company”), a premier hospitality and live music company dedicated to crafting luxury, experience-driven entertainment destinations, today announced the pricing of its initial public offering of 1,200,000 shares of the Company’s common stock at public offering price of $10.00 per share, for aggregate gross proceeds of $12 million prior to deducting underwriting discounts and other offering expenses. In addition, VENU has granted the underwriters a 45-day option to purchase up to an additional 180,000 shares of common stock to cover over-allotments, if any.

The shares of common stock are expected to begin trading on the NYSE American under ticker symbol “VENU” on November 27, 2024. The offering is expected to close on November 29, 2024, subject to customary closing conditions.

The Company intends to use the net proceeds from the offering to fund the expansion of its business operations, further development of Company services, business promotion activities, and for working capital and general corporate purposes, including general market expansion and due diligence efforts to explore the opening of new restaurant, entertainment, and music venues.

ThinkEquity is acting as sole book-running manager for the offering.

This press release does not constitute an offer to sell, or the solicitation of an offer to buy, any securities referred to in this press release, nor will there be any sale of any such securities, in any state or other jurisdiction in which such offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

A registration statement on Form S-1 (File No. 333-281271) relating to the shares was filed with the Securities and Exchange Commission (“SEC”) and became effective on November 12, 2024. This offering is being made only by means of a prospectus. Copies of the final prospectus, when available, may be obtained from ThinkEquity, 17 State Street, 41st Floor, New York, New York 10004. The final prospectus will be filed with the SEC and will be available on the SEC’s website located at http://www.sec.gov.

About Venu Holding Corporation

Venu Holding Corporation (“VENU”) (NYSE American: VENU) founded by Colorado Springs entrepreneur J.W. Roth, is a premier hospitality and live music venue developer dedicated to crafting luxury, experience-driven entertainment destinations. VENU’s campuses in Colorado Springs, Colorado, and Gainesville, Georgia, each feature Bourbon Brothers Smokehouse and Tavern, The Hall at Bourbon Brothers, and unique to Colorado Springs, Notes Eatery and the 8,000-seat Ford Amphitheater. Expanding with new Sunset Amphitheaters in Oklahoma and Texas, VENU’s upcoming large-scale venues will host between 12,500 and 20,000 guests, continuing VENU’s vision of redefining the live entertainment experience.

VENU has been recognized nationally by The Wall Street Journal, New York Times, Denver Post, Billboard, VenuesNow, and Variety for its innovative and disruptive approach to live entertainment. For more information, visit venu.live.

Forward-Looking Statements

Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation those set forth in the Company's filings with the SEC, not limited to Risk Factors relating to its business contained therein. Thus, actual results could be materially different. The Company expressly disclaims any obligation to update or alter statements whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241126642783/en/

For media inquiries contact Chloe Hoeft at choeft@venu.live or 719-895-5470

Source: Venu Holding Corporation

FAQ

What is the IPO price for Venu Holding (VENU) shares?

Venu Holding has priced its IPO at $10.00 per share.

How many shares is VENU offering in its IPO?

VENU is offering 1,200,000 shares of common stock, with an additional 180,000 shares available through an over-allotment option.

When will VENU stock begin trading on the NYSE American?

VENU stock is expected to begin trading on the NYSE American on November 27, 2024.

How will VENU use the IPO proceeds?

VENU plans to use the proceeds for business expansion, service development, venue openings, and working capital purposes.