Yesterday, I’ve told that today will be another interesting IP | Primor Investment Group

Yesterday, I’ve told that today will be another interesting IPO –– Vizio. However, after deep analysis, we decided not to take part in this IPO. Anyways here it is, in case you would like to invest in it.

You can take part in this IPO till 23/03/2021 5 pm UTC
*not an investment advice

Vizio –– a privately held, American company that designs and sells televisions and soundbars, based on Foxconn Technology Group. All Vizio TV's run on Platform+, which uses SmartCast, a proprietary operating system, and Inscape, a provider supporting data analysis and services. This makes Vizio smart TV's rich in features, such as Internet access, video streaming, and smart speaker connection.

Ticker –– VZIO
IPO listing date 25/03/2021
IPO size $4 billion
Listing price range $21 – $23
Underwriters: J.P.Morgan, BofA Securities, Wells Fargo Securities, Guggenheim Securities, Needham & Co

Highlights

- In late 2020, the company had 12.20M accounts .
- In 2020, the sales reached 7.10M smart TV's, an increase of 20% comparing to the previous year.
- Vizio is the second company in North America by TV shipments from January 2018 to December 2020, Omdia reports.

Downsides

- Vizio is not the leader in the Smart TV market. The company has stable growth, but only around 10% per year. According to forecasts, it won’t increase much more.
- The industry is filled with products from tech giants such as Sony, Samsung, LG and even Apple. These companies have much more opportunities to promote their products, which will most likely slow down the growth of Vizio.
- The company's revenue is highly dependent on e-commerce platforms (Walmart, Amazon) and if there is any disagreement with them, it will lose most of its revenue.
- The founder and CEO of the company will hold 91% of the shares. This means that his decisions are ultimatums for the company, which isn’t usually well appreciated by investors.

Interesting fact about this company is that it is already profitable. However, the purpose of IPOs, in general, is to raise money. Since Vizio’s financial reports are already positive, this raises doubts regarding the ability of their developers to correctly manage money.

Taking into account all the pros and cons we decided to skip this IPO. A fortiori that today were announced a couple of new IPO of world wide companies, such as SEMrush Holdings and Deliveroo . We’ll soon send our reviews about these companies!