Initial public offerings or IPOs are known as a great way for investors to make a big profit in a relatively short time. On average, they can bring investors 40% returns in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to sell their shares on the open market and raise more capital to continue their growth. If you’re a fan of the innovative american sports apparel brand, you may have wondered “is Under Armour publicly traded?” Read on to find out everything about the Under Armour stock IPO.
Under Armour History
Under Armour is a sports equipment company founded in 1996 by a University of Maryland graduate Kevin Plank.
Himself a university football player, he was frustrated at cotton t-shirts’ inability to soak up the sweat, and started searching for synthetic materials to do the trick. He launched the business from his grandmother’s basement in Washington using his own cash, a Small Business Administration loan, and credit cards.
Plank gave his first prototype to his teammates at Maryland who were playing in the NFL by then. He then improved the design and made a t-shirt using microfibers that effectively wick away moisture and keep athletes dry. This made Under Armour one of the most innovative clothing brands in the world. The majors such as Nike, Adidas, and Reebok soon followed suit and started creating their own moisture-wicking clothes.
He spent some time traveling the area with his apparel, and the first team sale of $17,000 came at the end of the year. Plank moved to Baltimore, where the current headquarters are located.
The company grew quickly thanks to word-of-mouth recommendations inside the NFL. Plank was constantly adding new products like clothes with long sleeves and for cold-weather. Plank was also actively partnering with wholesale sports retailers, which became one of the keys to the company’s success.
Less than 10 years later, Under Armour was a widely recognized performance clothing brand with almost $300 million in revenue, and it was time to ask, “when is Under Armour going public?”
Read on to find out about Under Armour IPO date and price, and other key info.
Under Armour Public Listing Key Data and IPO Date
Under Armour IPO Date: November 25, 2005
Ticker: UAA
Exchange: NYSE
IPO stock price: $13
Valuation at IPO: $
Market cap (5/4/22): $7 billion
CEO: Patrik Frisk
Category: Sports apparel
Listing method: traditional IPO
Under Armor went public on November 25, 2005, launching its IPO on the NYSE with the stock symbol UAA.
They launched a traditional IPO instead of merging with a special purpose acquisition company (SPAC), another way to launch an IPO by merging with a blank-check company. This makes the IPO process cheaper and quicker, which is why we saw a boom of SPAC IPOs in 2020-2021. However, this has its issues like giving away too much equity in exchange for the convenience.
Under Armour IPO price was set at $13 but opened at $31 on the day. This made this the first US IPO in five years to rise over 100% on the first trading day.
The company offered 12 million shares via a group of underwriters led by Goldman Sachs, raising $157 million in the launch.
The stock price grew consistently over the next 10 years, reaching a price of $52.05 on September 17, 2015, double from the closing price on their IPO date.
The founder Kevin Plank, who owns 14% of the company, has an estimated net worth $1.8 billion.
So What About Investing Now?
Almost 17 years after its IPO, Under Armour stays strong in a tough market, surrounded by major brands like Nike and Adidas.
But the thing that makes it weak is also what makes it strong. The company is very different from the major brands. Its bold, aggressive brand DNA is based almost entirely on Kevin Plank’s immense desire for growth and innovation.
The stock currently trades at $14 (as of 5/4/22), which may be a good price to buy for those who believe in the company long-term. And there are good reasons to believe. Even though their main business model of partnering with wholesalers has been under pressure, their recent restructuring means they will focus more on direct-to-consumer to a range of niches of customers in a variety of different sports.
One of the central ideas behind Gainy is to offer stocks according to your interests and goals, so if you like this company for its roots and values, this might be a better investment choice than a major corporation, even if the latter brings more returns.
Check out our IPO section to look at other scheduled IPOs. If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
FAQ
When is the Under Armour IPO date?
The Under Armour stock IPO date was on November 25, 2005, when the Baltimore-based clothing company was listed on the NYSE.
Is Under Armour a public company?
Yes, the Under Armour IPO was in 2005. When a company launches an IPO (or initial public offering) this means they become a public company whose shares are traded openly on the stock exchange.
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