Are IPOs Cool Again?

MACY’S: Rejects Offer

Macy's has rejected a $5.8 billion offer to go private from Arkhouse Management and Brigade Capital Management, citing concerns about the financing and valuation of the deal. The department store chain, struggling against newer online retailers and smaller physical stores, received the offer to buy out its remaining shares for $21 each. However, Macy's deemed the offer financially unattractive and lacking credibility.

Arkhouse and Brigade, holding a significant stake in Macy's, stated that their financial advisor, Jefferies, is confident in raising the necessary funds. Despite this, Macy's criticized the financing as uncommitted with unusual preconditions. The offer underscored Macy's undervalued real estate, estimated to be worth between $7.5 billion and $11.6 billion. Macy's, which owns 316 of its 722 stores, is also undergoing streamlining efforts, including job cuts and store closures.

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IPO: Amer Sports

Amer Sports, the company behind the Wilson sports brand, is targeting a valuation of up to $8.7 billion for its upcoming U.S. IPO, as announced on Monday. This move marks a significant step in an IPO market attempting to recover after two years of economic uncertainty and high-interest rates.

Despite recent cautious investor response to other high-value IPOs, Amer Sports plans to raise up to $1.8 billion by offering 100 million shares at $16 to $18 each. The company, known for its Wilson brand, used by 643 Grand Slam winners and endorsed by athletes like Roger Federer, will list on the New York Stock Exchange under the symbol "AS"”

Founded in 1950, Amer Sports owns several major sports brands and is supported by current investors Anta Sports, Anamered Investments, and Tencent Holdings, who are interested in purchasing up to $510 million in shares. Leading underwriters include Goldman Sachs, BofA Securities, JPMorgan, Morgan Stanley, Citigroup, and UBS Investment Bank.

Wall Street: Buy The Dip

Two prominent Wall Street firms are advising investors to buy five-year US notes after their significant drop last week, the largest since May. Morgan Stanley predicts a rebound in Treasury bonds as upcoming data may underperform expectations. JPMorgan Chase recommends purchasing five-year notes, noting yields are at a high since December, but warns that markets may be too optimistic about early central bank rate cuts.

Yields on five-year US notes jumped significantly last week as market expectations for Federal Reserve rate cuts this year decreased. The market now anticipates fewer rate reductions than initially expected in January.

Treasury bonds experienced minor fluctuations on Monday, with two-year yields slightly rising and five-year yields slightly decreasing. Upcoming Treasury debt auctions and economic reports this week may influence bond yields further. JPMorgan expects the first Fed rate cut in June, later than previously anticipated, while Morgan Stanley sees potential rate cuts by central banks in the US and Europe by spring.

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The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.