Though the market has entered the second half, IPO activity is yet to pick up momentum, with fewer companies seeking to go public compared to last year when the market witnessed a record number of listings. Sacks Parente Golf, Inc., a manufacturer, and supplier of golf equipment and related goods, recently filed to raise funds through an initial public offering.
The Offering
After obtaining the necessary regulatory clearance, the company’s stock will start trading on the Nasdaq Capital Market under the symbol SPGC. The sole underwriter in the offering is the Benchmark Company. The listing is expected to occur in the final months of the year — the exact date will be announced later. Also, the management is yet to reveal the number of shares being offered and the estimated offer price.
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Sacks Parente is still at a nascent stage of development and is yet to generate consistent income. As a public company, its ability to raise capital would depend mainly on the prospects of achieving profitability. Investors would be closely tracking the post-IPO performance.
Gamechanger
The company is headquartered in Camarillo, California, founded by Steve Sacks and Richard Parente in 2018. It is headed by chief executive officer Timothy Triplett. The growing product portfolio includes golf shafts, golf grips, and putting instruments. Leveraging their expertise in golf putters, Steve and Richard came up with innovative designs to help players improve their performance.
The long-term goal is to produce and assemble all kinds of golf products and venture into related areas like golf apparel. The company, which currently sells its products under the Sacks Parente Golf brand, seeks to include private labels for sale to interested clients. Also, plans are afoot to expand the market to regions like Mexico, South Korea, and Japan, a strategy that is expected to support the efforts to achieve profitability.
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The steady growth of the global golf equipment market bodes well for the company, thanks to increase in people’s disposable income, growing popularity of golf tourism, and shift to outdoor sporting activities due to health reasons. However, temporary headwinds like high inflation and macroeconomic uncertainties, coupled with the COVID-induced dip in consumer confidence, would be a concern as far as growth is concerned.
Score Card
In the three months ended March 31, 2022, Sacks Parente reported net sales of $65,000, which is slightly higher than the sales generated in the first quarter of 2021. Meanwhile, net loss widened to $144,000 in the latest quarter from $82,000 last year. In the whole of fiscal 2021, sales increased 10% annually to $200,000 and net loss narrowed to $302,000 from $497,000.