The sports industry is serving up an ace, and it might just be your next big investment opportunity. Amer Sports, the force behind the renowned Wilson tennis rackets and a series of other powerhouse sports brands is prepping for its debut on the US stock market.
Game, Set, Match – The Details
From the sleek Atomic skis to the durable Salomon gear, Amer’s range of brands covers the gamut of the athletic world. And their upcoming stock market debut has the industry buzzing. Sources whisper that the IPO might potentially value Amer Sports at a staggering $10 billion. While a cool billion is the preliminary target for the IPO, aspirations may stretch up to a whopping $3 billion, if the market responds favorably.
Backing this giant is China’s athletic apparel titan, Anta Sports Products. It’s noteworthy to mention that Anta isn’t alone in its ambitious pursuit. Among those that pitched in during Anta’s 2019 acquisition of Amer (for a neat $5.2 billion) were heavyweights like Lululemon’s founder, Chip Wilson, and Tencent Holdings.
A look at the ledger reveals promising signs. Amer Sports witnessed a commendable 22% surge in revenue last year, tallying up to $3.3 billion. Not too shabby for a company in a pandemic-affected market.
A Sluggish IPO Landscape – A Turnaround in Sight?
The broader US IPO arena has seen quieter days in recent years. However, murmurs suggest that Softbank-backed chip maestro, Arm, is eyeing a grand entry, possibly clinching a valuation of around $52 billion. This could very well reinvigorate the lackluster IPO scene.
Rob Wotczak, the visionary CEO of boutique investment bank Freedom Capital Markets, put it succinctly: “In a period that’s arguably seen the slowest IPO pace in two decades, both venture capitalists and investors are itching for fresh, innovative ventures.” If the anticipation and activity surrounding Arm is any indication, the market seems ripe for some action.
So, What’s Next for Investors?
If you’re an investor with an affinity for sports or simply someone looking to diversify their portfolio, keeping a close eye on Amer Sports’ impending IPO might be your winning move. With a solid backing, a range of renowned brands, and a potentially resurgent IPO market, this could be the match point you’ve been waiting for.