My eyes start glazing over reading these IPO statements and forecasts, especially given the track record of analysts, so here goes with a few copy and paste jobs on Acushnet's (Titleist/Footjoy) raising of $329 million on a $17 share price, below the projected range of $21 to $24/$435 million.
Analyst Eric Volkman at Motley Fool offered this take:
Meanwhile, Acushnet Holdings' fairly static top line and the high level of indebtedness would worry me if I were an investor. I'm also not really a fan of equity cash-outs, as the driving motivation of this activity is to put money in the hands of existing shareholders, not raise funds for the business.
Don Dion at Seeking Alpha had this to say:
Declining revenue and tough market for golf manufactures make us pass on investing in this upcoming IPO.
The fact that company insiders are selling 100% of the shares and that Fila Korea will have majoring voting power are additional detractors.
Its current valuation also looks like quite a significant mark-up from Fila Korea's 2011 purchase price.
While we do hear the deal is oversubscribed, we suggest investors play golf but avoid the GOLF IPO.
**Scott B. Simpson noted the giant miss by Motley Fool's assessment that competitor Nike's equipment skews younger and cooler. Of course, they are getting out of the business.