Amer Sports stock closed its first trading day up 3% from its discounted IPO price.
Shares of Amer Sports Inc. debuted higher on Thursday as the price of its massive initial public offering (IPO) was low enough to attract investor interest.
The IPO closed its first day of trading at $13.40 per share, up 3.1% from $13 per share. The stock’s initial trading on the New York Stock Exchange was at $13.40 for 2.5 million shares at 12:56 PM ET.
The IPO price was set at a $3 discount from the lowest of the expected price range of $16 to $18 per share.
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It is the second large IPO to debut at a discount in 2024, following BrightSpring Health Services Inc.’s IPO BTSG.
It’s January. 26.
Amer Sports, which held 105 million shares in the IPO, raised about $1.37 billion with 21 underwriters including Goldman Sachs, BofA Securities, JPMorgan and Morgan Stanley.
Amer Sports owns outdoor brands Arc’teryx, Salomon and Wilson and, as of September 30, operated 261 stores worldwide.
The company reported 2022 revenue of $3.55 billion, up from $2.4 billion in 2020, representing a compound annual growth rate (CAGR) of 20.4%. During the same period, net loss increased from $237.2 million to $252.7 million.
Amer Sports’ major shareholders include FountainVest Partners, Anta Sports Product Ltd., and Tencent Holdings Ltd. and billionaire Dennis J. “Chip” Wilson (founder of Lululemon Athletica Inc. LULU) and its affiliate Anamered Investment Inc.
Shareholders acquired Amer Sports in 2019 after announcing plans to acquire the company for about $5.2 billion in late 2018.
The stock market has been volatile, but several other deals are poised for the IPO market: American Healthcare REIT, Fortegra, and Fractyle Health.
Also read: American Healthcare REIT, Fortegra and Fractyle Health have set IPO price ranges as the thaw continues.
Amer Sports’ debut comes as the Renaissance IPO ETF IPO has gained 15.8% over the past three months, outperforming the S&P 500 Index’s 15.2% rise in SPX over the same period.
