Yesterday, Acushnet Holdings Corp., the parent company to major golf brands, Titleist and Footjoy, filed for an Initial Public Offering (IPO). According to some leading research firms, the Acushnet IPO could raise as much as $300 million. Acushnet’s Form S-1 didn’t note whether it intended to list on the New York Stock Exchange (NYSE) or Nasdaq, but it did state that the company intends to list the common stock under the ticker symbol “GOLF.”
In simple terms, an IPO is the process by which a privately-held business becomes a publicly-traded company with the initial sale of its stock to the public. Many entrepreneurs and business-owners view an IPO as a potential monetization of their stock; however, in this case, Acushnet noted that the company will not see any proceeds of the offering as all shares sold will be from the investors that bought the business in 2011.
As the media has been quick to note, the golf industry hasn’t exactly been booming recently so the IPO comes at an interesting time. Nevertheless, with the recent announcement by Adidas that it plans to sell the company’s golf division, which consists of the TaylorMade, Adams, and Ashworth brands, it will be interesting to see what effect, if any, the potential sale of TaylorMade has on the Acushnet IPO (or vice versa). Since both Taylormade and Acushnet are headquartered in and around North County San Diego, these transactions are likely to have an effect on the local economy which we will be closely following in the coming months.