Amer Sports Inc., the well-known maker of popular sports equipment brands such as Wilson and Salomon, has recently completed its US initial public offering (IPO) by raising $1.3 billion. However, the amount falls short of the company’s initial target range. The IPO was priced at $13 per share, with 100 million shares sold and commitments from investors to purchase an additional 21 million shares at the same price. Although the IPO is the largest since Birkenstock’s $1.48 billion offering in September, Amer Sports had originally set a range of $16 to $18 for its shares. The company has not yet provided any comments regarding the result of the IPO.

A consortium of investors, including Anta Sports Products Ltd., Anamered Investments Inc., and Tencent Holdings Ltd., who acquired Amer Sports in 2019, have agreed to purchase shares at the offering price. Anamered Investments, which belongs to Chip Wilson, the founder of Lululemon Athletica Inc., is also part of this group. However, this news is somewhat disappointing for the IPO market, as it marks the second major IPO in a week to fall short of its target. Just last week, BrightSpring Health Services Inc. struggled to reach its $960 million goal and raised only $693 million.

Amer Sports, with the backing of Chinese athletic-apparel producer Anta Sports Products Ltd., boasts ownership of several reputable brands, including Louisville Slugger, Arc’teryx, and Atomic. The company reported a net loss of approximately $115.6 million on a revenue of $3.05 billion for the nine months ending on September 30, 2023. Despite this, Amer Sports sees a significant market opportunity for its brands, estimating it to be worth $522 billion as of 2022.

With headquarters in Helsinki, Munich, Krakow, and Shanghai, Amer Sports employs over 10,800 individuals worldwide. The acquisition of Amer Sports by the Anta-led consortium in 2019 aimed to bring high-end athletic equipment to China’s growing middle class. Leading the company’s IPO are Goldman Sachs, Bank of America, JPMorgan Chase, and Morgan Stanley. Amer Sports shares are expected to begin trading on the New York Stock Exchange with the symbol AS.

Useful links:
1. Amer Sports Official Website
2. New York Stock Exchange