Amer Sports Inc. raised US $ 1.3 billion in a US initial public offering priced below a marketed range, according to people familiar with the matter, in the second major IPO in a week to miss its target.
According to information gathered by Bloomberg, Amer’s IPO, which raised US $ 1.3 billion, is the largest since September’s US $ 1.48 billion offering by Birkenstock Holding Plc.
According to the company’s filings with the US Securities and Exchange Commission, three participants in the consortium that purchased the business in 2019 committed to purchasing shares at the offering price. According to the documents, Tencent Holdings Ltd. is purchasing up to US $ 70 million worth of stock, while Anta and Anamered Investments Inc. intended to purchase up to US $ 220 million apiece. Chip Wilson, the man behind the yoga apparel company Lululemon Athletica Inc., founded Anamered.
The underwhelming outcome could stifle the IPO market’s budding revival. The market’s anticipated recovery was not realised following the initial wave of euphoria surrounding semiconductor manufacturer Arm Holdings Plc’s US $ 5.23 billion offering in September, as some subsequent initial public offerings saw their shares fall below their respective offer prices.
BrightSpring Health Services Inc., sponsored by KKR & Co., failed to raise the full US $ 960 million needed for its initial public offering (IPO) last week, raising only US $ 693 million. In conjunction with the offering, BrightSpring also sold about US $ 400 million in tangible equity units. As a result, the company’s shares have dropped 15% below the IPO price.
Anta Sports Products Ltd., the biggest manufacturer of sporting apparel in China, supports Amer Sports. Its brands include winter gear from Atomic and outdoor gear from Arc’teryx
According to the filings, Amer Sports recorded a net loss of around US $ 115.6 million on revenue of US $ 3.05 billion for the nine months that ended on September 30. By 2022, it projects a combined market opportunity of over US $ 522 billion across all of its brands.
The company employs more than 10,800 people worldwide, according to the documents, and has offices in Helsinki, Munich, Krakow, and Shanghai. Amer Sports’ IPO is being led by Goldman Sachs Group Inc., Bank of America Corp., JPMorgan Chase & Co. and Morgan Stanley.
