Yeti Gets Cold Shoulder on First Day of Trading
Yeti
Cooler maker Yeti Holdings Inc. (YETI) - Get Report saw its share price chill on its first day of trading - down 6.5% to $16.84 on Thursday, Oct. 25, below its initial public offering price of $18.
The $18 price set the day earlier was also below the $19 to $21 the company had aimed for earlier in the week.
Listing itself as an "emerging growth company," Yeti is an outdoors sporting goods maker of coolers and mugs that was founded in 2006. It is largely controlled by the Cortec Group Fund, which bought the company in 2012, according to Crunchbase.com, and still holds much of its voting power.
Yeti's products are on the high-end, with its mugs - such as the 30 oz. stainless steel Rambler - priced around $40 and its premium coolers going into the hundreds of dollars. Some versions of its Tundra cooler sell for around $500.
Yet the Texas-based company said demand was strong for its products, with net sales shooting from nearly $90 million in 2013 to more than $639 million in 2017. Over the same period, operating income grew from over $15 million to $64 million, says the company.