Amer Sports, Inc. Announces Pricing of its Upsized Public Offering of 40,800,000 Ordinary Shares

Rhea-AI Summary

Amer Sports (NYSE: AS) has announced the pricing of its upsized public offering of 40,800,000 ordinary shares at $23.00 per share. The company has granted underwriters a 30-day option to purchase up to an additional 6,120,000 shares. The offering is expected to close on December 6, 2024.

The company plans to use the net proceeds to repay a portion of outstanding borrowings under its term loan facilities. The offering is led by joint book-running managers BofA Securities and J.P. Morgan, with several other financial institutions participating as book-runners and co-managers.

Positive

• Successful pricing of large public offering indicating market interest
• Debt reduction through loan repayment using offering proceeds
• Strong underwriting support from major financial institutions

Negative

• Potential dilution of existing shareholders due to large share offering
• Significant outstanding debt requiring repayment

Insights

Financial Analyst

This IPO pricing announcement represents a significant capital raise of $938.4 million through the offering of 40.8 million ordinary shares at $23.00 per share, with potential for an additional $140.76 million if the overallotment option is exercised. The strategic decision to upsize the offering suggests strong investor demand.

The primary use of proceeds for debt reduction through term loan repayment indicates a focus on strengthening the balance sheet. With a market cap of approximately $12.9 billion, this offering represents about 7.3% of the company's value. The impressive syndicate of underwriters, led by top-tier banks BofA Securities and J.P. Morgan, adds credibility to the offering and suggests robust institutional support.

Market Research Analyst

The successful pricing of Amer Sports' IPO reflects positive market sentiment toward the sports and outdoor industry. The company's portfolio of iconic brands positions it well in the market, while the timing of the offering suggests confidence in the sector's growth prospects. The strong underwriting syndicate, including 16 financial institutions, indicates broad market reach and potential for diverse institutional participation.

The pricing at $23.00 per share appears to have found the sweet spot between maximizing capital raise and ensuring sufficient investor interest, as evidenced by the upsized offering. The inclusion of several minority-owned firms as co-managers demonstrates a commitment to diverse market participation.

HELSINKI, Finland--(BUSINESS WIRE)-- Amer Sports, Inc. (NYSE: AS) (“Amer Sports”), a global group of iconic sports and outdoor brands, announced today the pricing of its upsized public offering of 40,800,000 ordinary shares at a price of $23.00 per share. In connection with the offering, Amer Sports has granted the underwriters a 30-day option to purchase up to an additional 6,120,000 ordinary shares.

The closing of the offering is expected to occur on December 6, 2024 subject to the satisfaction of customary closing conditions.

Amer Sports intends to use the net proceeds it receives from the proposed offering to repay a portion of our outstanding borrowings under our term loan facilities.

BofA Securities and J.P. Morgan are acting as joint lead book-running managers for the offering. Goldman Sachs, Morgan Stanley, Citigroup and UBS Investment Bank are acting as book-running managers for the offering. BNP PARIBAS, Evercore ISI, Wells Fargo Securities, Baird, TD Cowen, HSBC, CICC, CLSA and Deutsche Bank Securities are acting as bookrunners for the offering. Blaylock Van, LLC, Drexel Hamilton, Loop Capital Markets, Ramirez & Co., Inc., Siebert Williams Shank and Tigress Financial Partners are acting as co-managers for the offering.

A registration statement on Form F-1 relating to the offering has been filed with the U.S. Securities and Exchange Commission on December 2, 2024 and was declared effective on December 4, 2024. The offering is being made only by means of a prospectus. Copies of the final prospectus relating to the offering, when available, may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies of the final prospectus, when available, may be obtained from BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC, 28255-0001, Attn: Prospectus Department, by email at dg.prospectus_requests@bofa.com; or J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, by telephone at 866-803-9204 or by email at prospectus-eq_fi@jpmorganchase.com and postsalemanualrequests@broadridge.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About Amer Sports, Inc.

Amer Sports is a global portfolio of iconic sports and outdoor brands, including Arc’teryx, Salomon, Wilson, Peak Performance, Atomic, and Armada. Our brands are known for their detailed craftsmanship, unwavering authenticity, and premium market positioning. As creators of exceptional apparel, footwear, and equipment, we pride ourselves on cutting edge innovation, performance, and designs that allow elite athletes and everyday consumers to perform their best.

With over 11,400 employees globally, Amer Sports’ purpose is to elevate the world through sport. Our vision is to be the global leader in premium sports and outdoor brands. With corporate offices in Helsinki, Munich, Kraków, New York, and Shanghai, we have operations in 40+ countries and our products are sold in 100+ countries. Amer Sports generated $4.4 billion of revenue in 2023.

Forward Looking Statements

This press release includes statements relating to a potential offering of ordinary shares of the Company that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In many cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “target,” “outlook,” “believes,” “intends,” “estimates,” “predicts,” “potential” or the negative of these terms or other comparable terminology. These statements are based on management’s current expectations but they involve a number of risks and uncertainties. Actual results and the timing of events could differ materially from those anticipated in the forward-looking statements as a result of factors relating to, without limitation: the strength of our brands; changes in market trends and consumer preferences; intense competition that our products, services and experiences face; harm to our reputation that could adversely impact our ability to attract and retain consumers and wholesale partners, employees, brand ambassadors, partners, and other stakeholders; reliance on technical innovation and high-quality products; general economic and business conditions worldwide, including due to inflationary pressures; the strength of our relationships with and the financial condition of our third-party suppliers, manufacturers, wholesale partners and consumers; ability to expand our DTC channel, including our expansion and success of our owned retail stores and e-commerce platform; our plans to innovate, expand our product offerings and successfully implement our growth strategies that may not be successful, and implementation of these plans that may divert our operational, managerial and administrative resources; our international operations, including any related to political uncertainty and geopolitical tensions; our and our wholesale partners’ ability to accurately forecast demand for our products and our ability to manage manufacturing decisions; our third party suppliers, manufacturers and other partners, including their financial stability and our ability to find suitable partners to implement our growth strategy; the cost of raw materials and our reliance on third-party manufacturers; our distribution system and ability to deliver our brands’ products to our wholesale partners and consumers; climate change and sustainability or ESG-related matters, or legal, regulatory or market responses thereto; changes to trade policies, tariffs, import/export regulations, anti-competition regulations and other regulations in the United States, EU, PRC and other jurisdictions, or our failure to comply with such regulations; ability to obtain, maintain, protect and enforce our intellectual property rights in our brands, designs, technologies and proprietary information and processes; ability to defend against claims of intellectual property infringement, misappropriation, dilution or other violations made by third parties against us; security breaches or other disruptions to our IT systems; changes in government regulation and tax matters; our ability to remediate our material weakness in our internal control over financial reporting; our relationship with our significant shareholders; other factors that may affect our financial condition, liquidity and results of operations; and other risks and uncertainties set out in filings made from time to time with the SEC and available at www.sec.gov, including, without limitation, our reports on Form 20-F and Form 6-K. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements. The forward-looking statements made herein speak only as of the date of this press release and the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances, except as may be required by law.

Source: Amer Sports, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241204853108/en/

Investor Relations:

Omar Saad

Vice President, Finance and Investor Relations

omar.saad@amersports.com

Media:

Reeta Eskola

Director, Communications

reeta.eskola@amersports.com

Source: Amer Sports, Inc.

FAQ

What is the price per share for Amer Sports (AS) public offering?

Amer Sports (NYSE: AS) has priced its public offering at $23.00 per share.

How many shares is Amer Sports (AS) offering in its December 2024 public offering?

Amer Sports is offering 40,800,000 ordinary shares, with an additional 30-day option for underwriters to purchase up to 6,120,000 shares.

What will Amer Sports (AS) use the proceeds from its 2024 public offering for?

Amer Sports plans to use the net proceeds from the offering to repay a portion of its outstanding borrowings under term loan facilities.

When is the closing date for Amer Sports (AS) public offering?

The offering is expected to close on December 6, 2024, subject to customary closing conditions.