Headphone co. Skullcandy raises $188.8M in IPO
Skullcandy Inc., which sells fancy headphones, decorative iPod cases and T-shirts emblazoned with its skull logo, raised $188.8 million in an expanded initial public offering that priced above expectations.
The Park City, Utah, company, which says its brand offerings "symbolize youth and rebellion," and its shareholders sold 9.4 million shares to initial investors for $20 each. It had said at the beginning of July that it would offer 8.3 million shares from $17 to $19 each.
The beefed-up offering signals strong demand from investors for Skullcandy's stock. More than half of the shares were sold by existing stockholders, including the company's founder, Rick Alden, and other executives and investment companies.
Skullcandy headphones are sold in electronics, sporting goods and mobile phone stores, as well as mass retailers such as Target and through the company's website.
The company was founded in 2003. Its revenue has grown from $9.1 million in 2006 to $160.6 million last year, lifted by the increasing popularity of devices that play music on the go, such as Apple Inc.'s iPods and iPhones.
But it posted a loss of $9.7 million in 2010, compared with profit of $12.3 million the year before.
In the first three months of this year, revenue grew to $36 million from $21.7 million in the same quarter last year, and Skullcandy posted net income of $1.1 million, up from a loss of $801,000.
The shares are expected to begin trading on the Nasdaq on Wednesday under the symbol "SKUL."
BofA Merrill Lynch and Morgan Stanley managed the IPO.