The State Of Golf: Tiger Woods' New Venture, Titleist IPO Near
The state of golf industry has entered a defining moment. The future of the game has become a controversial topic, with Nike Inc (NYSE: NKE) exiting the equipment business just a few months ago and Tiger Woods briefly entertaining a comeback and then quickly rescinding, saying that his game was not ready.
TGR, Tiger Woods' Venture
On Monday, Tiger Woods announced his new company, TGR, which consists of a portfolio of businesses including Wood's restaurant in Jupiter, Florida, his golf course design firm and TGR live, a non-profit events company that manages three PGA tour events. Woods is preparing for life off the course.
Titleist IPO Aims For Green
Amid this existential crisis of the game, Acushnet Holdings, parent company of famed golf equipment maker Titleist, made it even more peculiar by floating the idea of a nearly $2 billion dollar IPO in late 2015. Acushnet will trade under a very fitting ticker GOLF.
Terms of the IPO are starting to finalize, according to SeekingAlpha, as the company looks to raise $434.25 million, with shares priced in the $21–24 range. A total of 19.3 million shares will be up for sale. The company will join Callaway Golf Co (NYSE: ELY) as the only two pure golf plays in the market.
A bright spot for Titleist is that it has been the leading manufacturer of golf balls for decades, and the name has become synonymous with the product. Golf balls are considered consumable goods that need to be replaced often, and therefore, a better equipment product than golf clubs. Titleist Pro V1 model revolutionized the golf ball when it came out over 15 years ago.
According to Titleist's S-1, "We estimate that the sport of golf gives rise to a global commercial opportunity of more than $85 billion annually, which captures all spending related to golf."
While the current state of the sport will be looked at as a transitional phase in the games evolution, Titleist's upcoming IPO will be a good way to gauge the sports recovery.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email firstname.lastname@example.org with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.