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Steinway Musical Instruments Holdings, the entity driving 169-year-outdated piano enterprise Steinway & Sons, has disclosed designs to listing shares on the New York Stock Trade (NYSE).
The IPO ambitions of Astoria, New York-headquartered Steinway Musical Devices arrived to light-weight in an S-1 that was just just lately submitted with the Securities and Trade Fee (SEC). In accordance to this all-encompassing document, Steinway shares would get started trading beneath the image “STWY” – while the S-1 doesn’t surface to establish the stock’s goal cost or achievable IPO day.
The in-depth investigation does on the other hand include all fashion of other topics pertaining to Steinway, which existing owner Paulson & Co. took private back in 2013. The company’s web revenue in 2021 totaled about $538.35 million, for instance, with 75.5 % of the whole attributable to pianos and the remaining 24.5 % obtaining come from a variety of Conn-Selmer devices.
Also in 2021, 69 per cent of the company’s piano product sales derived from Steinway & Sons, even though in excess of fifty percent of Conn-Selmer gross sales “were created via our most well-liked dealer network to faculties and families who take part in commencing new music schooling systems.”
Whilst 53.6 % of the business’s 2021 profits resulted from buyers in the Americas, from 28.5 percent for APAC and 17.9 p.c for EMEA, bigger-ups emphasized the probable affiliated with expanding their company’s attain in China.
The latter has “the world’s largest” piano current market, for every Steinway, “with an average of around 400,000 pianos being marketed a 12 months from 2017 to 2020, in comparison to an common of all around 30,000 per year in the United States around the exact same period.”
“As China continues to acquire and accumulate wealth, we will look for to capture the escalating need for ultra-top quality pianos by personal shoppers,” reads Steinway’s SEC filing, noting also that the nation of 1.4 billion inhabitants accounted for 28.7 percent of piano income in the 2021 fiscal 12 months.
Last of all, in conditions of the business’s piano product sales, the Steinway Spirio and subsequently unveiled Spirio | r (which occur with a “complimentary” iPad and iPad Professional, respectively) built up 32 p.c of the category in 2021, for every the breakdown.
And amid skyrocketing property rates, execs indicated that they “typically assume demand from customers for our items to keep track of amplified action in the housing marketplace, as consumers are far more probable to invest in Steinway pianos as they purchase new and larger-stop properties.”
On the chance entrance, Steinway acknowledged that everything from purely natural disasters to an inherently long manufacturing time (purportedly “an artisanal procedure that will take at the very least 6 months per piano”) could negatively affect functions in the potential.