NEW YORK: The iconic maker of guitars favored by Clapton and Hendrix is riffing on an IPO valuation of 20 times earnings. But Fender has questionable global expansion plans, depends on a big shaky customer and generates only pick-thin margins. There's too much to make investors fret.
Fender Musical Instruments on July 9 set a price range of between $13 and $15 a share for its initial public offering. The guitar maker would be valued at $395 million at the top end of the range. Private equity firm Weston Presidio is selling 3.5 million shares, decreasing its ownership stake from 43 percent to about 18 percent.
Comments
Comments are closed.