Pool Maker Latham Rises 43% in Debut After $380 Million IPO
(Bloomberg) -- Residential pool company Latham Group Inc. rose 43% in its trading debut after raising $380 million in an initial public offering priced at the bottom of a marketed range.
The company’s shares, which sold for $19 in Thursday’s IPO, closed at $27.25 in New York trading Friday, giving the company a market value of about $3.3 billion. Latham had marketed the shares for $19 to $21 each.
Latham’s profit and revenue grew during the coronavirus pandemic, with property owners focusing on home improvements, including pools.
Chief Executive Officer Scott Rajeski said in an interview that he believes Latham can outpace the market, which he expects to grow by 10% a year.
“We felt this was a really good time to get our story out there into the public markets and continue to drive with brand awareness of our company,” Rajeski said.
Latham had net income of $16 million on revenue on net sales of $403 million in 2020, compared with $7.5 million in net income on $318 million in sales the previous year.
“Stay-at-home directives and remote work increased consumer focus on the home environment and safety,” the company said in its filings. “We believe that the Covid-19 pandemic was a driver of lasting changes in consumer behavior that favors home-related spending.”
The company, based in Latham, New York, plans to use the IPO proceeds to pay down debt and buy back shares, as well as for general corporate purposes.
The offering was led by Barclays Plc, Bank of America Corp., Morgan Stanley and Goldman Sachs Group Inc. The shares are trading on the Nasdaq Global Select Market under the symbol SWIM.
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