In 1853, Franklin Pierce turned President of the U.S., Washington turned a territory and Levi Strauss started his apparel and dry-goods company in San Francisco.
In that exact year, a German immigrant named Henry Engelhard Steinway developed the very first Steinway piano in a loft at 85 Varick Street in New York Town.
Steinway, who went by Steinweg again then, experienced a straightforward objective: “To construct the most effective piano attainable.”
‘No Way But Steinway’
The company has grown dramatically considering the fact that those people early days, and the list of artists who have employed Steinway pianos range from Irving Berlin and Cole Porter to Sergei Rachmaninoff to Diana Krall and Billy Joel.
“If I am to perform my very best, there is no way but Steinway,” pianist Lang Lang as soon as claimed.
Now, Steinway Musical Instruments Holdings has filed with the Securities and Exchange Fee to record its inventory on the New York Stock Trade less than the ticker symbol STWY.
“The Steinway piano was the instrument of decision for roughly 97% of live performance pianists when undertaking with orchestras throughout the globe throughout the 2018-2019 live performance year,” the firm claimed in its submitting.
Steinway initially went public in 1996, investing under the ticker symbol LVB for Ludwig van Beethoven, until billionaire hedge-fund supervisor John Paulson bought the business in 2013.
“As a custodian of Steinway, John Paulson has targeted on investing in our organization, which include in technological know-how, corporation-owned showrooms, our producing procedures and equipment, and in teaching our workforce to build a more robust staff,” the filing said.
‘Established, Profitable Organization.’ Is Timing Suitable?
Goldman Sachs, Financial institution of The us Securities and Barclays are the joint lead bookrunning managers and associates for the proposed offering.
But is this the suitable time for an IPO?
A report last thirty day period by the accounting business EY observed claimed the IPO marketplace has found a significant slowdown from 2021, owing to things such as a increase in geopolitical tensions, inventory-current market volatility, and worries about mounting commodity and energy costs.
EY explained there was also there was a sizeable tumble in SPAC IPOs, as effectively as cross-border, unicorn and mega IPOs, which are individuals with proceeds previously mentioned $1 billion.
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“The IPO industry has long gone from remarkably very hot to remarkably chilly due to the fact the turn of the calendar year,” reported Jay Ritter, professor at the University of Florida’s Warrington Higher education of Business enterprise.
Ritter said that 2021 was the most energetic IPO industry in the U.S. due to the fact 2000, by a large margin. Nevertheless, only six IPOs elevated additional than $100 million have launched this yr.
“Steinway Musical Devices Holdings is an proven, rewarding enterprise with annual revenue of $538 million and right after-tax revenue of $59.2 million for 2021,” he explained. “It will have no issues getting IPO investors at a valuation of in excess of $1 billion.”
Custom, and Innovation
Innovation is proving to be a person supply of revenue, as Steinway introduces know-how that Henry Engelhard Steinway could never think about.
In 2015 the corporation introduced the Spirio participant piano, which characteristics recorded performances by renowned pianists.
Spirio | r, introduced in 2019, enables recording and higher-resolution modifying in addition to playback.
Last year, the firm released Spiriocast, which enables performances to be streamed are living, in sync with video and audio, from a piano to listeners and viewers any where in the globe.
Sales of Spirio and Spirio | r pianos grew at a compounded yearly rate of more than 30% from 2016 by means of 2021 and represented about 32% of the firm’s piano-section internet gross sales in 2021.
Critically Important New Marketplace
Steinway is also looking toward China, because of to “a deep-rooted reverence for classical tunes, exclusively piano songs, and a sizeable and promptly expanding middle and upper class with an urge for food for luxury Western solutions.”
China is the premier world market place for pianos and has about 40 million practising pianists, the business claimed. Which is approximately 7 moments the range of practising pianists in the U.S.
Steinway reported that about 30 million kids in China are using piano lessons, in comparison with fewer than 10 million in the rest of the earth, “suggesting that the the greater part of youngsters taking part in the piano globally are in China.”
“Inspite of the prevalence of piano actively playing in China and our brand name energy in the area, we have traditionally been below-penetrated in the country, selling around 50 percent as lots of Steinway grand pianos in China as in the U.S. sector,” the filing explained.
As China proceeds to develop and accumulate wealth, Steinway stated it “will request to seize the expanding demand for ultra-quality pianos by private clients.”
“In excess of the very last 20 several years, we have reworked our company in China to market extra pianos to non-public customers relatively than establishments,” the organization mentioned.