Performance Sports Group Ltd. (NYSE: PSG) was known as Bauer Performance Sports until three days ago. The newly named firm held its initial public offering (IPO) Friday morning, selling 7.1 million shares at an IPO price of $15.50. Shares opened at $16 and traded as high as $16.82 in morning trading.
Gross proceeds from the offering total $110 million, and the underwriters have a 30-day option on an additional 1.06 million shares. Performance Sports is based in Vancouver, British Columbia, and trades on the Toronto Stock Exchange as well.
The company makes and markets sports equipment under brands such as Bauer (hockey) and Easton (baseball and softball). The company’s principal shareholder is a subsidiary of Kohlberg Sports Group that paid $200 million in cash in 2008 to Nike Inc. (NYSE: NKE) for its Bauer Hockey subsidiary. Kohlberg held approximately 10% of the company’s outstanding shares prior to the IPO.
The company’s Bauer brand is the leading ice hockey equipment manufacturer in a global market estimated to be worth about $650 million annually. Skates and sticks account for about 60% of sales.
The baseball and softball equipment market was worth $600 million in the United States last year and $1 billion globally. One-third of that market is bat sales.
Just before noon on Friday, Performance Sports stock traded at $16.51, up about 6.5% from the IPO price.