Cooler Maker Yeti Falls in Trading Debut After Downsized IPO

(Bloomberg) -- Yeti Holdings Inc., the beverage cooler maker that had delayed its initial public offering, fell in its trading debut after raising $288 million in a downsized offering.

The Austin, Texas-based company and existing stockholders sold 16 million shares Wednesday for $18 each, below the marketed range of 20 million at $19 to $21 apiece to investors, according to a statement. Yeti withdrew its initial listing plans in March, citing market conditions.

Shares dropped 5 percent to $17.10 at 10:59 a.m. in New York, valuing Yeti at $1.4 billion.

Yeti makes coolers and related products designed to stand up to harsh conditions on hunting and fishing trips. The company sells them on its websites and through retail partners such as Dick’s Sporting Goods Inc. Yeti’s sales fell last year as it faced increased competition in its home market from brands including Houston-based RTIC that sell directly to consumers, as well as from local providers outside the U.S.

In 2017 the company posted net income of about $15 million on net sales of $639 million, it said in a regulatory filing. A year earlier, Yeti had net income of $49 million on net sales of $819 million.

Bank of America Corp., Morgan Stanley and Jefferies Financial Group Inc. led the offering. The shares trade on the New York Stock Exchange under the ticker YETI.

To contact the reporter on this story: Alex Barinka in San Francisco at abarinka2@bloomberg.net

To contact the editors responsible for this story: Elizabeth Fournier at efournier5@bloomberg.net, Michael Hytha, Matthew Monks

©2018 Bloomberg L.P.