In late November, the New York Post reported that Authentic Brands Group (ABG) has confidentially filed for an IPO. When the newspaper reached out to its founder and CEO, Jamie Salter, he responded by saying he was interested in a “liquidity event for the employees”.
A liquidity event is one of two things: A buyout, or an IPO. We prefer the latter.
And I’m hopeful Loyal3 customers will get a chance to participate in the Authentic Brands Group IPO. Because we have a “big” advocate for the “common man” on our side of the court.
Who Is Authentic Brands Group?
Authentic Brands Group is a New York-based company that manages various retail brands and the brands of celebrity personas, both alive and dead. The estates of Michael Jackson, Marilyn Monroe, Muhammad Ali, and Elvis Presley, all entrust ABG to manage and monetize their legacies.
It also owns iconic consumer brands such as Juicy Couture, Jones New York, Tapout, Hickey Freeman (suits), Prince (tennis), Tretorn, and Airwalk.
From the company profile:
ABG owns, manages, and elevates the long-term value of a portfolio of global brands… Our brands span the fashion, sports, and entertainment sectors. This vast footprint facilitates partnerships with key accounts across retail channels from high-end department and specialty stores to mid-tier and mass retailers. Our innovative marketing strategies drive the success of our brands. From traditional and new media initiatives to entertainment brand alignment, the ABG team delivers seamless brand integration across all platforms.
Interestingly, dominant basketball icon and astute businessman Shaquille O’Neal is also a client of ABG. They manage his personal brand today and expect to continue to preserve his legacy as the “ambassador of fun” even when he’s gone.
Shaq gets 51% of all revenue generated and managed by ABG for his brand.
The Loyal3 Connections
I thought this was good for the common man, and Shaq is all about the common man. You don’t have to be super rich to start out with Loyal3. – Shaq
Shaq’s stake in Loyal3 and relationship with ABG makes him the perfect liaison to bridge a deal between the two. A deal could provide Loyal3 customers the opportunity to invest in 5% to 10% of the IPO offering.
ABG is an excellent candidate for a Loyal3 IPO because their managed brands have millions of loyal fans worldwide. Loyal3 is all about strengthening the relationship between the company, the customers, and the shareholders by making it easy to own stock.
Other similar businesses are already available for purchase on the Loyal3 stock trading platform including L Brands (LB), VF Corp (VFC), PVH Corp (PVH) and Kate Spade (KATE).
Another ABG connection to Loyal3 is apparel company Aéropostale. Aéropostale’s stock was available to buy and sell on the Loyal3 platform until the company was taken over by a consortium led by ABG in September 2016.
Is Authentic Brands Group IPO a Slam Dunk for Ordinary Investors?
If the New York Post article is accurate and an Authentic Brands Group IPO is potentially on the horizon, then the best way to be prepared to invest is to open an account with Loyal3. As a customer, you may be eligible to invest in the IPO before the first trade if an underwriter deal is made with LOYAL3. Participation is on a first come, first served basis.
To learn more about investing in IPOs at Loyal3, check out my free eBook on the subject.
When the S-1 filing is released to the public, we’ll inspect to see if Loyal3 is included as an underwriter, or if there are clues suggesting they will be prior to the first trade. Hopefully, the conversations around this deal have already been brokered by the 7′ 1″ former forward. If not, a late game pick and roll is always possible.
I like the odds with Shaq on our side of the court. This deal would benefit all parties involved including ABG, its employees, Loyal3, Shaq, and nearest to our hearts… the common man IPO investor.
We know that IPO investing is rarely a slam dunk. But with Shaq championing the deal, let’s hope we get a shot at this one.
Disclosure: The author is long VFC stock.
Photo: Justin Armstrong CC0 public domain via Wikipedia Commons