Acushnet rumoured to be launching IPO this week
One of golf’s most iconic labels is going public.
Acushnet Holdings Corp, makers of the world’s most popular golf ball, the Titleist, as well as other equipment like Footjoy shoes is expected to scroll across the New York Stock Exchange ticker sometime this week when it has its initial public offering (IPO).
One of Titleist’s leading players is world number six Adam Scott (Credit: Anthony Powter)
With a market value already reported to be around the $1.7billion mark, the IPO is expected to raise about $435m through the sale of 19.3 million shares priced between $21 and $24.
The proceeds will go to previous investors, rather than the company itself.
And it seems that following a series if related transactions in advance of the offering, the majority of voting shares will be retained by Fila Korea Ltd, which has owned Acushnet since 2011.
Acushnet employs about 5,200 fulltime workers around the world with a glove factory in Thailand leading the way with about 1,500 workers on its books.
There are also golf-ball manufacturing plants in New Bedford and Dartmouth in the US.
The IPO also comes in a year where that has been a substantial drop in the number of offerings in the US with just 85 this year, compared to 170 last year and 275 the year before that.
And most of the companies offered this year have been life sciences and technology firms
Reports from the US suggest this would be the first by a consumer goods outfit.
Experts suggest investors might be drawn to Acushnet’s IPO by Titleist simply because they are one of the most iconic brands in the $8.7 billion golf industry.
While some areas of the golf industry have suffered through the absence of Tiger Woods and a number of other factors in the past year and a half, Acushnet – or more specifically Titleist and Footjoy’s reputations have remained intact with many of the world’s best players opting to play their equipment – with or without a contract.