Solo Brands (DTC) IPO: 7 Things to Know About the Upcoming $1.5 Billion IPO of the Solo Stove Maker

October 26, 2021 1:16 PM EDT

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Solo Brands, Inc. (NYSE: DTC) is set to launch its U.S. IPO on Thursday. Solo Brands is a large, rapidly growing DTC platform operating four premium outdoor lifestyle brands - Solo Stove, Oru Kayak, ISLE Paddle Boards, and Chubbies apparel, which develop innovative products and market them directly to customers mainly via e-commerce channels. Below are 7 important facts to focus on into the IPO:

1. Solo Brands IPO Timing: Solo Brands, Inc. is expected to have its IPO on the NYSE on Oct 28, 2021. The stock ticker is 'DTC'. Normally IPOs on the NYSE began trading between 10AM-2PM ET.

2. Solo Brands IPO Price: The company anticipates the initial public offering price to be between $14.00 and $17.00.

3. Shares Offered: The company is offering 12,903,225 shares of its Class A Common Stock (or 14,838,708 shares if the underwriters exercise in full their option to purchase additional shares). There will be 62,223,211 Class A shares (or 64,158,694 shares if the underwriters exercise in full their option to purchase additional shares) and 33,264,401 Class B shares (all of which will be owned by the Continuing LLC Owners) outstanding following the offering.

4. Solo Brands IPO Valuation: A pricing at the midpoint of the range would value the company at around $1.5 billion.

5. IPO Underwriters: BofA Securities, Inc., J.P. Morgan Securities LLC, Jefferies LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Piper Sandler & Co., William Blair & Company, L.L.C., Fifth Third Securities, Inc., Academy Securities, Inc., and C.L. King & Associates, Inc are acting as joint book-runners on the deal.

6. Important Financials: Individual brand net sales for 2020 for each of the company’s currently owned brands were $133 million for Solo Stove, $44 million for Chubbies, $21 million for ISLE, and $12 million for Oru. Net sales for the three months ended September 30, 2021, is expected to be between $66.8 million and $69.3 million.

7. Solo Brands Total Addressable Market (TAM): While the company participates in a broad range of categories, its Solo Stove, Oru, and ISLE brands primarily participate in the massive and growing global outdoor recreation industry. According to P.J. Solomon, consumption in the U.S. Sporting Goods and Outdoor Recreation Category grew 18% to approximately $220 billion, from 2019 to 2020, and is expected to continue growing. For example, for the company’s Solo Stove brand, it is believed the core U.S. addressable residential market is 76 million detached single-family households. Today, the company’s U.S. penetration is less than 1% of this addressable residential market, representing a substantial growth opportunity with increased brand awareness.



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