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Highlights
- Stocks of Authentic Brands Group could soon be available soon for public trading.
- Authentic Brands is buying the Reebok brand from Adidas for around US$ 2.5 billion.
- The company’s website claims to have a massive follower base of 270 million social media users and a gross merchandise value of US$ 15 billion.
Investors interested in getting a slice of Authentic Brands Group (ABG), listen up. The American brand management company could soon be going public.
The firm, which filed for an initial public offering last month, could be looking to raise about US$ 100 million in gross proceeds for its Class A common stock. However, reports suggest that the final capital figure could even touch billions.
Interest investors shifted their attention to Authentic Brands’ IPO plans after shoe designer Adidas Group agreed to sell its Reebok brand to ABG for approximately US$ 2.5 billion.
This move will add yet another well-known brand to ABG’s already massive line-up of big names like Nautica and Arrow.
Also Read: Fanatics IPO: How to buy this sports company’s stock?
A little about Authentic Brands
New York-based Authentic Brands focuses on transforming global brands while executing strategies on store management, supply chain management and marketing of products.
The brand management company has over 6,000 stores, 800 global partners and 30 brands under its umbrella, per its website. In addition, Authentic Brands claims to have a massive follower base of 270 million social media users and a gross merchandise value of US$ 15 billion.
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Authentic Brands IPO plans
With its recent move to purchase Reebok, Authentic Brands appears to be in an expansion mode. The company will likely aim to go public as soon as possible to generate money from gross proceeds.
ABG is expected to debut on the New York Stock Exchange (NYSE) and trade under the stock ticker of ‘AUTH’.
The leading underwriters for the IPO will reportedly be BofA Securities, Goldman Sachs and JP Morgan, among other investment banks.
Those interested in ABG’s pre-IPO shares can explore the options of a trading account with a brokerage company or a stockbroker who has access to the pre-IPO shares.
Also Read: TikTok IPO: Is the video-sharing platform going public?
Bottomline
Authentic Brands is uniquely positioned in the business as it also obtains the intellectual property rights of the brand and NIL (Name, Image, and Likeness) of celebrities. ABG's list of renowned celebrities includes Marilyn Monroe, Shaquille O’Neal, Elvis Presley, Muhammad Ali and Julius Erving, among others.
According to the form filed with the US Securities and Exchange Commission, Authentic Brands' net income for the fiscal year of 2020 was US$ 225.3 million, up from US$ 96.5 million in 2019.
For the period ended March 31, 2021, Authentic Brands’ balance sheet reflected US$ 457.3 million worth of cash and cash equivalents.
