Weber IPO


 
I was just reading about this and wondered about the quality hit we could take. Really this could go two ways I guess. One is profit concerns will drive quality down. The other is overall sales number concerns will drive quality up and prices down to better compete. Unfortunately I think we know which way most public companies go.
 
Will investor profits hurt the quality and warranty we are used to?

Seriously?

The Stephens family sold a majority stake in the company to a PE firm in 2010. PE firms are the most laser-focused, coin-operated investors you could ever have. If anything, Weber might have a bit more financial flexibility as a public company.

For example, in 2021 the company spent $189 million cash to buy back some of the Stephens family's equity. And then also paid out a special dividend to other equity holders of $261 million cash (see page 170).

I bet if they'd kept some of that $430 million in cash (!!!) maybe the SmokeFire launch would have been a little smoother?

P.S. The deal should be first half of August. The IPO was actually initially filed (confidentially) back on May 10. The publicly available filing today means that the roadshow marketing can start in 15 days (July 27). So this should come to market in early August and be done before all the I-bankers decamp to Maine or the Hamptons for their extended Labor Day break.

Around 7/27 you will see another filing which has June 30 numbers and also an estimated share price (so you can see what the proposed valuation is). $2B in revenue, $230M in EBITDA, and $1.2B of debt. So I'm guessing a $5B company valuation or higher.
 
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Someone with knowledge about this please explain...how does one get in on the initial public offering of a stock like WEBR?

Best way is to be on the "friends and family" list to get an allocation of a hot IPO. So call any friends you have at Goldman, BofA, JP Morgan, Davis Polk, Simpson Thacher or WEBR.

Absent a connection, talk to your regular stockbroker. If they wind up being a member of the underwriting syndicate, they might get an allocation of shares for their customers.
 
[Re-posted from the other thread]

Will investor profits hurt the quality and warranty we are used to?

Seriously?

The Stephens family sold a majority stake in the company to a PE firm in 2010. PE firms are the most laser-focused, coin-operated investors you could ever have. If anything, Weber might have a bit more financial flexibility as a public company.

For example, in 2021 the company spent $189 million cash to buy back some of the Stephens family's equity. And then also paid out a special dividend to other equity holders of $261 million cash (see page 170).

I bet if they'd kept some of that $430 million in cash (!!!) maybe the SmokeFire launch would have been a little smoother?

P.S. The deal should be first half of August. The IPO was actually initially filed (confidentially) back on May 10. The publicly available filing today means that the roadshow marketing can start in 15 days (July 27). So this should come to market in early August and be done before all the I-bankers decamp to Maine or the Hamptons for their extended Labor Day break.

Around 7/27 you will see another filing which has June 30 numbers and also an estimated share price (so you can see what the proposed valuation is). $2B in revenue, $230M in EBITDA, and $1.2B of debt. So I'm guessing a $5B company valuation or higher.
 
I would just wait to buy the stock if you want it. When the stock hits the market after the IPO it will probably be close to the same price anyhow. I often see the price well below the IPO. It is not a ticket to make money.
 
Some Q2 data on IPO first day pops.

TL/DR -- IPO "pops" have been pretty good lately. But you (as an individual) probably aren't going to get any of that... But you never know...

Rewards for IPO investors, but mostly on the first day​

IPO investors have been rewarded: excluding two high-flying micro-caps, the average IPO returned 26% in the second quarter, according to Renaissance Capital.

However, the vast majority of that return (24%) was earned on the first day of trading.

“That is not ideal for retail investors,” because retail investors are buying in on the first day, so while some of that first-day return may be available, a good portion is not, Kennedy explained. “The majority of the returns are going to the institutional buyers.”
 
Jim C in Denver said:
Someone with knowledge about this please explain...how does one get in on the initial public offering of a stock like WEBR?

Best way is to be on the "friends and family" list to get an allocation of a hot IPO. So call any friends you have at Goldman, BofA, JP Morgan, Davis Polk, Simpson Thacher or WEBR.
Click to expand...
I'm betting if anybody could get an in on the IPO through WEBR it's be Chris Allingham. Couple' phone calls would be all it'd take.
 
Personally I'm not going to bother tying for the IPO. As said above most of the gains are from the first day but reduced/lost while holding it until the stock can be sold. I'll probably buy some shares down the road just to own it but nothing substantial because I doubt dividends will be worth it for a while.
 
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