$6-bln Valuation
Meanwhile, the management is yet to disclose the size of the IPO and the offer price. Of late, investor demand for IPO stocks has not been very encouraging, but Weber’s strong fundamentals and brand power, together with the scale of business and ability to create shareholder value, make it an investment option worth considering. The extensive omnichannel network, comprising DTC, e-commerce, and wholesale, helps maintain the leadership position in key markets.
70-year Legacy
Weber was founded in 1952 by George Stephen who is credited for making the first charcoal grill called Weber Kettle. Headquartered in Palatine, Illinois, it is led by chief executive officer Chris Scherzinger who has been holding the post for the past three years. Besides charcoal grills, the company also sells electric/gas smokers and wood pellet products. The focus of the management’s growth strategy is innovation and the continued expansion of the product portfolio.
While the ongoing market reopening bodes well for the corporate world, Weber’s future prospects would depend on economic recovery and people’s spending power, since most of its products come under the consumer discretionary category. Sales could come under pressure from seasonal factors and unfavorable weather conditions. Also, the pandemic situation continues to be critical in some of the overseas markets where the company has operations.
$1.5-bln Revenue
Unlink most IPO aspirants these days, Weber is a profitable company that continues to expand its global market share – as much as 24% as per the latest estimates. In fiscal 2020, net income jumped to $88.9 million from $50.1 million a year earlier. The growth was supported by an 18% increase in revenues to $1.53 billion. The products are being sold in 78 countries, with a global installed base of 50 million.
Should you invest in Sight Sciences’ initial public offering?
Earlier this month, Weber’s rival TGPX Holdings had filed for IPO, seeking to list on the New York Stock Exchange under the ticker symbol COOK.