Weber Grills plans to launch a new line this year that redefines the propane grid, CEO Chris Scherzinger told CNBC Thursday ahead of the company’s public listing.
In “Squawk on the Street,” Scherzinger said the Internet-connected line will be able to measure propane levels, alert users when the tank is low and “get you a recharge.”
“You can have a new business model now for Weber by leading subscriptions, engaging consumers between grilling experiences, all sorts of new ways we can take this category,” Scherzinger said, adding that the company plans to unveil the new “game-changer” line in about three months.
The Weber shares, which are traded under the symbol “WEBR” on the New York Stock Exchange, were up more than 16% as of Thursday morning. Weber’s debut comes about a week after rival grill maker Traeger raised $ 424 million in its IPO.
Weber raised about $ 250 million in its initial public offering Thursday, selling about $ 17.9 million in shares at $ 14 a piece, according to a company statement. here we go less than half the amount had been planning to raise it since last month, when it announced plans to sell 46.88 million shares between $ 15 and $ 17 each, raising up to $ 797 million at a valuation of about $ 5 billion.
“We don’t really focus on the day-to-day or the bumps and the sound. We’re focused on the long run,” Scherzinger said when asked about the reduced IPO. “What we’re doing is investing in growth, and the investors we’re talking about are super excited about our track ahead.”
Weber sells gas, electric and coal grills. Based in Illinois, it operates in 78 countries around the world and has 4,710 global retail partners. In the six months ended March 31, Weber recorded revenue of $ 963.3 million, up 62% from the same window a year earlier. Net income jumped 213% year-over-year to $ 73.8 million in that six-month period.
Scherzinger said the company’s consumer and e-commerce initiatives account for more than 20% of the company’s business and have generated more than 65 million visitors to its website annually. last. Since 2018, Weber’s direct activity to the consumer has had an annual growth rate of 47%, according to its filing with the SEC.
“With a wide margin, we have an average of three times more on the No. 2 player in every country, and in every country, it’s a different No. 2,” Scherzinger said. “It’s led 70 years of double-digit sales growth, and we expect a really long track record for a $ 49 billion market ahead of us.”
– Reuters contributed to this report.