Fender Guitars IPO Seeks to Raise $200 Million
With the much anticipated Facebook IPO on the horizon, and investors scrambling to buy up hot social media stocks, it’s is good to know other interesting IPO’s are also coming to light. Last month Fender Musical Instruments announced it has filed for an Initial public offering of its own.
Fender, the United State’s biggest guitar seller, is a brand closely tied to the birth of rock n’ roll and popular culture in general. Rock icons such as Jimi Hendrix, Eric Clapton, and Keith Richards have brought notoriety to the brand. Their ever popular Telecaster and Stratocaster models are as much a staple now as they were shortly after their introduction in the 1950’s.
The IPO seeks to raise $200 million which will mostly go to pay down their enormous debt load of over $264 million. The stock, which should be offered some time in May, will offer more than just a piece of the Fender Instrument business. The musical giant owns many popular brands including Latin Percussion, Squier, Jackson, Ovation, and Guild Guitar.
Like many products, musical instrument sales took a hit which the downturn of the economy. After suffering huge losses in 2009 and 2010, the company is back up in the green as of last year, which earned them $3.2 million in profit.
So if you want to invest in a piece of rock n’ roll history and an American icon, Fender Musical Instrument stock will be made available on the NASDAQ under the ticker symbol FNDR soon. Pick up a few shares of Facebook and offset set it with some Fender. Both are sure to remain staples of american society.