MGO Global (MGOL) has filed to raise $7.5 million in an IPO of its common shares, according to an S-1 registration statement. The company sells licensed Messi Brand sportswear, accessories, and home decor items.
While the company has shown promise due to the licensing of the Lionel Messi brand, management has yet to demonstrate that it can grow sales to any significant extent based on the company’s results thus far.
MGO Global, based in Fort Lauderdale, Florida, was created to purchase and operate a portfolio of lifestyle businesses anchored by renowned individuals.
Maximiliano Ojeda, co-founder Chairman and CEO, has been with the firm from its start in 2017 and was previously an executive at numerous real estate development organizations.
Apparel, Accessories, and Home Decor are the primary products offered by the company.
MGO had received $4.1 million in fair market value investment from investors as of September 30, 2022.
According to Grand View Research’s 2021 market research report, the global market for ‘athleisure’ items was anticipated to be $307 billion in 2021 and is expected to reach $661 billion by 2030.
MGO Global IPO
MGO intends to raise $7.5 million in gross proceeds via an initial public offering(IPO) of its common stock, offering 1.5 million shares at a projected price of $5.00.
Existing shareholders have expressed no desire to purchase shares at the IPO price. According to a second prospectus, selling stockholders may offer up to 2.5 million extra shares.
In the event of a successful IPO, the company’s enterprise value at the time of the IPO would be around $59.4 million, excluding the effects of underwriter over-allotment options.
The float-to-outstanding-share ratio (excluding underwriter over-allotments) will be around 11.37%. A value less than 10% is often regarded as a ‘low float’ stock, which can experience severe price fluctuation.
According to management, the net revenues from the IPO will be used as follows:
- 65% of net proceeds (about $3.8 million) will be used for team expansion and marketing;
- 35% of net revenues (about $2.1 million) will be used for general and administrative corporate purposes, such as working capital and capital expenditures. (Source – SEC)
The corporate roadshow management presentation is not available.
Regarding any legal processes, management states that it is not aware of any that would have a major detrimental effect on its financial situation or operations.