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Summary
- Weber Inc., the maker of iconic barbecue grills in the US, announced filing for an initial public offering (IPO) on Monday, July 12.
- Weber’s announcement comes just days after rival Traeger Inc. made its IPO plans public earlier this month.
- The grill maker has nearly 70 years of experience in the industry after it reportedly invented the covered charcoal cooking grill in 1952.
Weber Inc., the maker of iconic barbecue grills in the US, announced filing for an initial public offering (IPO) on Monday, July 12. Weber’s announcement comes just days after rival Traeger Inc. made its IPO plans public earlier this month.
The grill maker has nearly 70 years of experience in the industry after it reportedly invented the covered charcoal cooking grill in 1952. The company claims to have a presence in 78 countries.
According to market research agency MetrixLab, Weber is said to have a brand awareness of about 87 per cent in the US, of about 74 per cent in Canada, of 86 per cent in Germany and of 89 per cent in Australia. Notably, these four countries are among the largest grilling markets in the world.
Let us look at Weber’s IPO plans.
Weber IPO date, IPO size, stock price, etc
The Palatine, Illinois-based company plans to raise about US$ 100 million from its IPO, and it could reportedly seek a valuation of US$ 4-6 billion US at its public debut.
In its prospectus filed with the US Securities and Exchange Commission, Weber stated that it wants to list its shares on the New York Stock Exchange.
Grill makers may be eyeing public debut as people are expected to stay at home amid the ongoing pandemic, which could boost sales of such home goods.
According to the prospectus, Weber's management, Trott, and BDT Capital Partners are among the most significant stakeholders of the company.
JPMorgan Chase & Co., Bank of America Corp. and Golan Sachs Group Inc. is set to be the leading underwriters for the public debut. Once the IPO is through, Weber shares are expected to trade under the ticker symbol 'WEBR'.
The gross proceeds from the offering could be used to buy back shares from some existing stakeholders and the holding company.
Weber's latest financials and outlook
Weber recorded revenues of US$ 963.3 million in the six months ending on March 31, 2021, noting an increase of 62 per cent year-over-year (YoY). In the same period, its net income expanded by 213 per cent YoY to US$ 73.8 million.
The company claims that nearly 30 million households in the US and 50 million worldwide have installed Weber grills since 1952.
According to data firm Grand View Research, the market size of barbecue grills, which was US$ 5.2 billion in 2020, is estimated to grow at a compound annual growth rate of 4.5 per cent between 2019 to 2025.
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How to invest in WEBR stock?
Over the years, investors have started focusing on pre-IPO shares as their prices generally increase once the shares are listed on a stock market. Investors looking to book pre-IPO shares can explore trading accounts options, which can be accessed by paying a small commission or even free.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
