Summary
- OneWater Marine has filed proposed terms for its $60 million IPO.
- The firm operates a network of boat and related products retailers in the south and eastern U.S. regions.
- OWM has grown enviably, but that growth is decelerating. The IPO appears reasonably priced, but no IPO proceeds will go to its expansion plans.
- I'll watch the IPO from the sidelines.
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Quick Take
OneWater Marine (OWM) has filed to raise $60 million in an IPO of its Class A common stock per an S-1/A registration statement.
The company is a retailer of recreational boats and related products and services in the south and eastern regions of the U.S.
OWM has grown admirably, is producing earnings, and the IPO appears reasonably priced. However, given the stock market volatility, the IPO market’s challenges, and the firm’s decelerating growth rate, combined with no IPO proceeds for its expansion plans, I'll be passing on the IPO but putting it on a watchlist for future review.
Company & Business
Buford, Georgia-based OneWater was formed in 2006 after the merger of Singleton Marine and Legendary Marine, and operates 60 recreational boat retail stores in the US, consisting of 20 dealer groups in 11 states across the Southeast, Gulf Coast, Mid-Atlantic and Northeast.
Management is headed by Founder, CEO and Director Austin Singleton, who has served in various positions within the dealership from the fuel dock, to the service department, to the sales department, to general manager.
In 2018, the company sold over 7,500 new and pre-owned boats, of which management believes about 40% were marketed to a returning customer.
