Weber Stock Jumps On First Day Of Trade After Undercooked IPO

A downsized Weber IPO that priced below expectations set up the grill maker’s trading debut on the New York Stock Exchange Thursday. But WEBR stock rose 18% to 16.50 after reaching 17.25 intraday.




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The Weber IPO comes after last month’s debut from rival Traeger (COOK), amid an effort to take advantage of a pandemic-era boom in outdoor activity.

Weber (WEBR) on Thursday priced an offering of 17.9 million shares at $14 apiece, raising $250 million. According to a filing late last month, it had been planning to offer 46.9 million shares at between $15 and $17.

The Weber IPO gave the company a valuation of just under $4 billion. Goldman Sachs, BofA Securities and J.P. Morgan Securities were the lead book-running managers. BDT Capital Partners, which has been a controlling shareholder in Weber, will hold on to most of the voting power.

After a searing IPO market this year, there have been some signs of IPO fatigue. Several IPOs were postponed in recent days, the Wall Street Journal noted, citing data from Dealogic.

Weber IPO Vs. Traeger IPO

Traeger’s IPO late last month fared better. That company, which makes wood pellet grills, priced at the high end of its expected range. Shares of Traeger have spiked since its debut, and were up 3% in the stock market today.

Weber’s roots go back to the early 1950s, when its founder, George Stephen Sr., fashioned a dome-shaped grill out of a metal buoy.

For the past six months ending on March 31, Weber’s sales jumped 62% to $963.3 million. During its fiscal 2020, which ended Sept. 30, sales rose 18% to around $1.5 billion.

With the back porch and other outdoor areas replacing other forms of entertainment last year, customers spent more than $4.9 billion on grills, smokers, camping stoves and related equipment last year, according to NPD Group. Between last April and this February, the number of grills and smokers sold increased 39% — based on dollar sales — to more than 14 million.

Interest in the outdoors has increased over the past year, after the pandemic kept people at home and away from travel and other entertainment options. The shift has lifted shares of companies like cooler maker Yeti (YETI), swimming-pool supplies distributor Pool Corp. (POOL) and Callaway Golf (ELY)

This year, expectations of post-pandemic summer jubilation have faded as coronavirus cases surge in the U.S. and the nation struggles to get more people vaccinated.

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Harry Byrne

Harry Byrne

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