SKullcandy files for IPO
Skullcandy, one of Mercato's portfolio companies, files S-1 with SEC for IPO
DOW JONES NEWSWIRES
Headphones-seller Skullcandy Inc. filed for up to an estimated $125 million in stock to be sold in an initial public offering, as it seeks proceeds to repay debt and for general purposes.
U.S. IPO volume has been heavy lately, following a rebound in such activity in 2010.
In a filing with the Securities and Exchange Commission, Skullcandy said its brand reflects the "collision of the music, fashion and action sports lifestyles," with products "fusing bold color schemes, loud patterns, unique materials and creative packaging with the latest audio technologies and innovative functionalities." The company also sells clothing and accessories such as backpacks featuring its skull logo.
For the nine months ended Sept. 30, Skullcandy's earnings jumped 37% as sales climbed 36% and margins widened. The company said it expects the increasing use of portable media devices and smartphones and the growing popularity of action sports to support long-term sales growth.
It expects its shares to trade on the Nasdaq Global Market under the symbol SKUL.
-By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com
