SharkNinja completes spinoff and trades on the NYSE
SharkNinja (NYSE: SN) completed its separation from parent JS Global Lifestyle Company and became a publicly traded company on the New York Stock Exchange Monday.
Details: On its first day of trading, shares of SharkNinja jumped 40% to close at $42.31 per share.
- Though in morning trading on Tuesday, the stock was off about 14%.
- JS Global shareholders received one ordinary share of SharkNinja for every 25 ordinary shares they owned in the parent.
Zoom in: SharkNinja made the decision to list in the U.S. months ago, but the IPO market was frozen at that time, CEO Mark Barrocas tells Axios.
- SharkNinja, however, chose the current timing months in advance, he says.
- The spinoff was the result of an internal strategic review, Barroca says, adding that investment banks Goldman Sachs and Morgan Stanley guided them through the U.S. listing process.
- The move by JS Global, which is listed in Hong Kong, to separate SharkNinja was because the unit's products were unknown in the Chinese market, even though those products made up a majority of the parent company's sales, Barrocas explains.
- SharkNinja has had an easier time explaining its business to investors in a market where its products are widely sold, he adds.
By the numbers: As of Dec. 30, SharkNinja had $3.7 billion in net sales and a CAGR of 20% between 2008 and 2022.
- Shark-branded products had $2 billion in net sales last year, while Ninja had $1.7 billion.
- The company says it is the No. 1 seller of small kitchen appliances and floor care (vacuums) in the U.S.
Of note: Its products — which range from vacuum cleaners to coffee makers — are sold in mass retailers such as Walmart, Target and on Amazon, and in department stores such as Macy's and in electronics retailer Best Buy.
- They are also sold in 26 markets around the world, with the overseas business outside of North America approaching $1 billion, Barrocas says.
Between the lines: SharkNinja's success stems from products that are multi-functional and sold at a relative value, he says.
What's next: The company will announce quarterly earnings on Aug. 24, the CEO says.
Flashback: Barrocas says he and his partners sold a majority stake in the business in 2017 to JS Global, which then went public in Hong Kong in 2019.
What they're saying: "There's not many chances in life that you get to ring the NYSE bell in the morning and it definitely lived up to its hype," Barrocas says.