IPO of the Week: Yeti

Josef Schuster
Dr. Josef Schuster is the founder of Chicago-based IPOX Schuster LLC and chief architect of the IPOX® Indexes. The IPOX methodology is implemented in an IPO and spin-off strategy at Catalyst Funds. Before founding IPOX, Dr. Schuster pursued his academic work on European IPOs in the Financial Markets Group (FMG) at the London School of Economics (LSE), where he completed his MSc and PhD and conceived the idea to start IPOX. He regularly appears in the media as an expert in global New Listings and respective investment products.

Company Description

Founded in 2006 in Austin Texas, YETI is a private equity-backed outdoor equipment designer, marketer, retailer and distributor. The company offers coolers & equipment, drinkware along with other outdoor accessories. As of September 2019, Cortec Group still owns ca. 46.2% of YETI.

Business Model

YETI operates in the retail sector and generates revenue from sales. Coolers & Equipment and Drinkware are the two primary product categories that contribute to the net sales.

IPO History

On 10/25/2018, YETI began trading on NYSE. BofA Merrill Lynch, Morgan Stanley and Jefferies were the lead book running managers for the deal. The share was priced at $18.0 per share, below the expected range of $19 to $21 per share. The company sold 16 million shares, 20% less than expected and with an additional 15% over-allotment option exercised in part, YETI was valued at approximately $1.5 billion at offer. Close to 85% of shares were offered by selling stockholders. The stock opened at $16.75/share and recovered to finish the first day at $17. YETI was included in the IPOX® 100 U.S. Portfolio on 03/15/2019 and currently weighs approximately 0.17% of the portfolio.

Historical Performance

Growth Outlook

Industry Comparison