Amer Sports IPO: A Bumpy Start for a Chinese-Owned Sporting Goods Company

TLDRAmer Sports, a Chinese-owned sporting goods company, recently went public with its IPO. The IPO price was lower than expected, and the company faced pushback from investors due to its exposure to China. Despite the lower price, the stock rallied after the IPO. Amer Sports is an example of the challenges faced by Chinese IPOs and the risks associated with Chinese-owned companies.

Key insights

📉Amer Sports IPO price was lower than expected, and the stock faced initial pushback from investors.

🌍Amer Sports is a Chinese-owned company, which historically tend to be poor performers in IPOs.

🇨🇳Amer Sports was acquired by a consortium of Chinese investors in 2019, including Anta Sports and Tencent.

💰The IPO allowed the consortium of Chinese investors to partially exit their investment in Amer Sports.

📉Lowball IPO prices can result in a decent pop in the stock price, as observed in Amer Sports' case.

Q&A

Why did Amer Sports' IPO price end up lower than expected?

—Amer Sports faced pushback from investors due to its exposure to the Chinese market, which resulted in a lower IPO price.

Is Amer Sports a Chinese-owned company?

—Yes, Amer Sports was acquired by a consortium of Chinese investors in 2019, including Anta Sports and Tencent.

What is the consortium that owns Amer Sports?

—The consortium consists of Chinese investors, including Anta Sports, a Chinese sporting goods powerhouse, Tencent, a Chinese tech titan, and a Chinese private equity firm.

Did the IPO allow the consortium to fully exit their investment in Amer Sports?

—No, the IPO allowed the consortium of Chinese investors to partially exit their investment in Amer Sports.

Why did the stock rally after the Amer Sports IPO?

—Despite the lower IPO price, the stock had a decent pop, which can be attributed to the lowball price and investor demand.

Timestamped Summary

00:08Bright Spring Health Services' IPO started off poorly, suggesting mixed results for IPOs recently.

00:13Two cancer-oriented biotechs had successful deals, indicating positive outcomes for certain sectors.

00:37Amer Sports, a sporting goods and outdoor brands play, had an IPO well below the proposed range.

00:47Amer Sports' low IPO price allowed the stock to rally and close up about 3% from the offer price.

01:13Amer Sports' IPO is another example of an out-of-favor IPO, despite the initial pop in the stock price.

01:19Chinese-owned companies in IPOs tend to be poor performers historically.

01:32Amer Sports was acquired by a consortium of Chinese investors, including Anta Sports and Tencent.

01:48The IPO allowed the consortium of Chinese investors to partially exit their investment in Amer Sports.

Browse more