Yeti Coolers won鈥檛 be going public. Nearly two years after it first filed for an IPO, the Texas-based company has submitted to the Security and Exchange Commission to withdraw its IPO filing.
Few brands have as core a following as Yeti coolers. The Texas-based company makes some of the most expensive coolers on the market鈥攃oolers famous for their ability to withstand bear attacks and keep items cold for days. This聽premium product drew quite a profit. When Yeti聽 for an IPO in July 2016, the company listed 2015 net sales of $468.9聽million.
Not surprisingly, Yeti had high hopes for its IPO. Its goal was to raise $100 million. Renaissance Capital, an IPO-analysis and investment group, that the Yeti IPO could yield up to $500 million.
So why did Yeti decide to back out? So far, they haven鈥檛 cited specified reasons. The withdrawal request simply states that they have decided 鈥渘ot to proceed with the offering due to market conditions.鈥
Market conditions could be anything, though it might be a veiled reference to the new on imported steel and aluminum, which have caused some volatility in the stock market. Yeti uses stainless steel in its line of tumblers and water bottles, which, according to the initial IPO filing paperwork, accounted for 62 percent of total net sales for the three months leading up to March 31, 2016.
Once the market stabilizes, might Yeti decide to push ahead with a public offering? They鈥檝e certainly left room for that possibility. The withdrawal letter requests that 鈥渁ll fees paid to the Commission in connection with the filing of the Registration Statement be credited for future use.鈥
Rich Hill, president of the Grassroots Outdoor Alliance, says he suspects that Yeti simply, “failed to reach escape velocity on their long planned, multi-billion dollar IPO.” That is: they hadn't raised as much聽investment money as they wanted ahead of the IPO. “Chaos was expected as Yeti needed to right size their business,” Hill聽says.
Of course, there鈥檚 also the possibility that the change of heart has nothing to do with the stock market or pre-IPO investors. Maybe it鈥檚 just cold feet.聽After all, just four years after its聽IPO, GoPro stocks have sunk from $24 to $5 per share. Much of this has been chalked up to a series of product recalls, as well as a number of competing brands that have entered the market. Yeti has certainly been aggressive when it comes to protecting itself from competitors. In the last few years, it鈥檚 sued a number of companies, including , and , for alleged copyright infringement.
But there鈥檚 something else that GoPro and Yeti have in common: they both produce a small range of聽premium products that have a high price tag and are built to last. Once you buy one, do you need to buy another?