Amer Sports discounts IPO on China worries

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NEW YORK: Amer Sports has raised US$1.37bil in a discounted US initial public offering (IPO), after investors expressed concerns about its growing reliance on China for its revenue.

It was another blow to the United States IPO market seeking to recover after two years of subdued activity. A poor performance from Amer Sports could discourage other IPO hopefuls.

A sizeable but smaller company, BrightSpring Health Services, priced its US$633mil offering last week below its indicated range. Shares in BrightSpring, owned by private equity firm KKR, have been trading below their discounted IPO price.

Amer Sports, owner of Arc’teryx outdoor apparel, Salomon sporting goods and Wilson tennis gear, said it priced its IPO at US$13 per share, below its US$16 to US$18 per share indicated range.

The company added that it had sold five million more shares than the 100 million shares it had earmarked. The IPO values Amer Sports at about US$6.3bil.

Amer Sports generated 19.4% of its sales in China in the first nine months of 2023, up from 8.3% in 2022, its IPO prospectus shows. Most of the sales come from the Americas and Europe, and while revenue in these regions has been growing, sales in China were up by 68% in the first nine months of 2023. — Reuters

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