Despite being a risky type of investment, initial public offerings or IPOs are known as a great way for investors to get good returns in a relatively short time. On average, they can bring 40% in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to sell their shares on the open market and raise more capital to continue their growth. Whether or not you’re a fan of classical music you may have wondered “is Steinway publicly traded?” Read on to find out everything about the upcoming Steinway stock IPO.
Few companies going public can boast a history like Steinway. In fact, this is not even the first time Steinway is going public. Steinway had an IPO on the NYSE in August 1996 and traded its shares under the ticker LVB (for Ludwig van Beethoven) until 2013 when it was acquired by the private capital firm Paulson & Co.
Steinway’s history dates back to 1853, when German piano maker Heinrich Engelhard Steinweg aka Henry E. Steinway came to Manhattan to make the best pianos in the world. They established a factory in New York and later one in Hamburg, Germany, where Steinways are still being handmade in the company’s tradition to this day.
Their landmark product is the Steinway & Sons grand. Played by some of the best pianists in classical, jazz, and pop music of the past and present, Steinway epitomises the grand piano and has been the benchmark for competitors for over 150 years. Virtually all major concert halls around the world have one.
Known for their craftsmanship and vigorous research into acoustics, the company owns 139 patents relating to piano making, but the modern-day company, Steinway Musical Instruments Holding Inc., is much more than a piano maker. They’ve acquired numerous of other musical instrument manufacturing companies, including other makers of pianos as well as brass, woodwinds, strings, and percussion instruments.
Read on to find out the Steinway IPO date and price, and other key info.
Steinway Public Listing Key Data and IPO Date
Steinway IPO Date: 2022 (TBA)
IPO stock price: N/A
Valuation pre-IPO: $1 billion
Market cap: N/A
CEO: Ben Steiner
Category: Musical instruments
Many investors who love music must be wondering, “when is Steinway going public?” Although the IPO process has officially been started, the underwriters led by Goldman Sachs, BofA Securities, and Barclays have not yet set out the specific terms of the deal.
We know the company is planning to get listed on the NYSE once again under the stock symbol STWY.
Because private companies tend to be private, we don’t know anything specific about their IPO date or initial offering stock price.
So What About Investing Now?
While it is still technically possible to speculate on the current IPO market, with recent short-lived successes like AMTD and Magic Empire Global (MEGL), it’s impossible to approach this market with anything other than a speculative mindset.
That’s why a Steinway IPO could become a breath of fresh air for a troubled market.
While many IPOs are based around hype — and their falling stocks graphs attest to this — Steinway is a good, established business with a stellar brand. And, yes, they are profitable, with annual sales of $538 million and profits of just under $60 million. Unless their factories get nuked in WW3, we can even say this business has a moat that Warren Buffett likes to see in a business.
While they can still launch in 2022, we wouldn’t be too surprised if it was postponed until the next year. The current owner John Paulson is a hedge fund manager than knows a thing or two about recessions. He is famous for making billions of dollars shorting the housing market ahead of the 2008 crisis, so he probably has some good guesses about the best time to launch and IPO. Paulson, who owns the company via his hedge fund Paulson & Co. after buying it for $512 million, could easily add to his $3 billion net worth by launching at the right time.
While it’s unlikely that a stock like Steinway will become a meme stock, this may be a great opportunity to invest in this great business and buy a part of their musical legacy.
Their long-term potential aside, keep in mind that IPOs are much more risky than buying stable blue-chip stocks. Even for a great company the price can go down for years after the IPO, as it’s impossible to remove the speculative element when even a good business enters the market.
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Is Steinway a public company?
While the Steinway stock IPO date has not been confirmed yet, but the company has been preparing for an IPO for a while, and Steinway stock IPO date should be sometime in 2022 or early 2023. When a company launches an IPO (initial public offering), they become a public company whose shares are traded openly on the stock exchange. When that happens, we’ll find out the Steinway IPO price.
Is Steinway a SPAC?
While a lot of the details about the Steinway IPO remain private, most likely the company will go for a traditional IPO instead of merging with a special purpose acquisition company (SPAC).