Famous 'Federer Racket' and 'Lee Jae-yong Padding'
Expected 2.4 Trillion Won Fundraising Falls Short at 1.7343 Trillion Won
Market Cap 8.4036 Trillion Won, High Dependence on China Is a Problem
After last year's Burkenstock listing, Amersports, which was attracting attention as the biggest player in the US initial public offering (IPO) market, raised a smaller amount than initially planned, securing $1.3 billion (approximately 1.7343 trillion KRW), Bloomberg reported on January 31 (local time).
Founded in Finland, Amersports owns popular sports brands such as Wilson, widely known for the rackets of 'Tennis Emperor' Roger Federer, Arc'teryx, famous for the 'Lee Jae-yong padding,' and the ski equipment brand Salomon. In 2019, it was acquired by a consortium led by Anta Sports, the largest sportswear company in China.
Initially, Amersports planned to offer about 100 million shares in the range of $16 to $18 per share (approximately 21,346 to 24,010 KRW), aiming to raise up to $1.8 billion (approximately 2.401 trillion KRW). However, according to sources, as investor demand weakened, the company priced the shares lower at $13 per share (approximately 17,343 KRW). This means Amersports raised $1.3 billion, with an initial market capitalization of $6.3 billion (approximately 8.4036 trillion KRW). Amersports is scheduled to be listed on the 1st.
The reason Amersports considered lowering the share price is interpreted as a China risk. According to sources, some investors are concerned about Amersports' ties to China. In fact, global investors have recently been reducing their exposure to China due to the Chinese real estate crisis and local government debt issues.
Additionally, Amersports mentioned in its IPO prospectus that if US-China trade tensions escalate, there could be restrictions on selling products manufactured in China in the US. Since being acquired by Anta, Amersports' dependence on China has increased. Currently, Amersports has suppliers and manufacturing facilities in China, and about 33% of products supplied by third-party suppliers in 2022 were manufactured in China.
Debt is also a concern. As of the end of September 2023, Amersports holds over $5.5 billion (approximately 7.3365 trillion KRW) in outstanding loans. It also recorded a net loss of about $114 million (approximately 15.21 billion KRW) by September 2023.
Following BrightSpring Health Services, which was expected to be a promising IPO candidate this year but failed to meet its target, Amersports also showed below-expectation results. Bloomberg reported, "The disappointing outcome could cool the early recovery of the IPO market," adding, "ARM did not rebound as much as expected in the market last September, and some IPOs have since fallen below their offering prices."
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