Amer Sports, Inc (AS)

Amer Sports Inc., a prominent player in the sports equipment and apparel industry, is poised for a significant financial move as it files for an initial public offering (IPO) on the New York Stock Exchange. The company, headquartered in Finland and boasting a rich history dating back to its establishment in 1950, has a diverse portfolio of renowned brands, including Salomon, Wilson, and Arc’teryx. In 2019, Amer Sports underwent a transformative acquisition when it was purchased in a deal valued at $5.6 billion by a consortium led by China's Anta Sports. This consortium, which includes notable entities such as video game giant Tencent and Lululemon founder Chip Wilson, sought to capitalize on Amer Sports' market presence and potential. The acquisition was facilitated through a €1.3 billion loan set to expire in March, emphasizing the crucial role a successful IPO will play in reducing Amer Sports' debts. While the filing for the IPO does not disclose specific financial details, sources familiar with the matter suggest a targeted fundraising goal of over $1 billion with an anticipated valuation of $10 billion. Amer Sports plans to allocate the proceeds from the transaction to settle outstanding shareholder loans, a move aimed at enhancing financial stability. As of the first nine months of 2023, Amer Sports reported a robust financial performance, with revenues experiencing a notable 30% increase, reaching $3.1 billion. However, during this period, the company also faced widening losses, growing from $104 million to $114 million. Geographically, Amer Sports diversifies its sales, with approximately 15% generated in Greater China, while the majority comes from the lucrative markets of the United States and Europe. It's worth noting that by the end of 2022, the company held a net debt of $5.8 billion.