Outdoor grills maker Weber valued at nearly $5 billion in debut as shares rise
Reuters
Published Aug 05, 2021 11:22AM ET
Updated Aug 05, 2021 12:03PM ET
(Reuters) -Shares of Weber Inc rose over 20% in their New York Stock Exchange debut on Thursday, giving the outdoor grills maker a market capitalization of nearly $5 billion as the company cashes in on the growing popularity of barbecuing at home.
Weber's shares opened at $17, compared with their initial public offering (IPO) price of $14 per share.
The company downsized its IPO to about 17.9 million shares earlier in the day, less than half of what it was planning to sell earlier.
At a price of $14 per share, Weber raised about $250 million in its IPO.
The Palatine, Illinois-based company, whose grill types include gas, electric and charcoal, made its debut a week after rival wood pellet grill maker Traeger Inc started trading on the NYSE.
Weber was founded by George Stephen Sr., who invented the Weber Kettle - a dome-shaped charcoal grill - about 70 years ago.
In the United States, Weber boasts of a 23% market share, according to Frost and Sullivan estimates cited in its regulatory filing. Globally, it holds 24% of the market.
The company's revenue jumped 62% year-on-year in the six months ended March 31, driven by the increasing adoption of an outdoor lifestyle, Weber disclosed in the filing.
BDT Capital Partners, a U.S. fund run by Warren Buffett's banker Byron Trott, holds a controlling interest in the company in partnership with the Stephen family and management.
Entities including BDT will hold about 74% of the combined voting power of Weber's common stock after the offering.
Goldman Sachs (NYSE:GS), BofA Securities and J.P. Morgan were among the underwriters for the offering.
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Written By: Reuters
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