FOX is Going Public - Files $120 Million IPO 23

109 bturman https://p.vitalmtb.com/photos/users/109/avatar/c50_profile_1487817150.jpg?1487816891 https://www.vitalmtb.com/community/bturman,109/all 08/01/09 1095 119 6185 890 https://www.vitalmtb.com/community/bturman,109/setup 286 1533 2654 205 44

bturman
7/8/2013 11:10 PM

UPDATE - August 7, 2013: FOX completed its IPO today, announcing the pricing of 8,571,429 shares of common stock at $15 per share. The shares will be available on the Nasdaq Global Select Market on August 8, 2013 under the symbol "FOXF".

In a letter to employees, CEO Larry Enterline noted that at 6:30AM PT on August 8, members of the FOX team and Levi LaVallee will ring the NASDAQ bell. You can watch it on CNBC or Fox Business News.

July 8, 2013 - Ever wanted to invest in FOX? Well, you may be able to do just that in short order. Today, FOX Factory Holdings Inc, backed by Compass Diversified Holdings (who owns about 76% of the company), filed with the US Securities and Exchange Commission to raise up to $120 million in an initial public offering. The company has applied to list shares on NASDAQ under the symbol FOXF.

The preliminary prospectus, which you can read here (thanks for the shout out, FOX!), didn't say how many shares they plan to sell or the expected price. Of note, FOX reported a profit of $14.2 million in 2012. The company said it would use proceeds from the offering to repay debt totaling $52.9 million.

About FOX

FOX redefines ride dynamics for ATVs, mountain bikes, motocross, off-road vehicles, snowmobiles, trucks and UTVs. In 1974, Bob Fox redefined the world of motocross suspension with the FOX AirShox and for over three decades, FOX's team of enthusiasts and professional athletes have been uniquely committed to redefining ride dynamics that improve your performance. Headquartered in Scotts Valley, CA, FOX's main manufacturing operations are located in Watsonville, CA, its Offroad Division and manufacturing in El Cajon, CA, and a Midwest Service Center in Baxter, MN. FOX distributes its products in more than 40 countries.

www.ridefox.com

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109 bturman https://p.vitalmtb.com/photos/users/109/avatar/c50_profile_1487817150.jpg?1487816891 https://www.vitalmtb.com/community/bturman,109/all 08/01/09 1095 119 6185 890 https://www.vitalmtb.com/community/bturman,109/setup 286 1533 2654 205 44

bturman
7/8/2013 11:10 PM

23 comments

12951 Frank_Rizzo https://p.vitalmtb.com/photos/users/12951/avatar/c50_fb_picture_674295380.jpg?1327543115 https://www.vitalmtb.com/community/Frank-Rizzo,12951/all 01/25/12 1 30

Frank_Rizzo

8/8/2013 3:26 PM

buy buy buy!

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4240 jeff.brines https://p.vitalmtb.com/photos/users/4240/avatar/c50_149187_936024901533_10205078_50991835_3734911_n.jpg?1321466271 https://www.vitalmtb.com/community/jeff-brines,4240/all 08/29/10 1 7 13 4 https://www.vitalmtb.com/community/jeff-brines,4240/setup 25 563 950 24 7

jeff.brines

8/8/2013 8:54 AM

IPO priced at the high end of its expected $13-15/share range. Opened at $18.00 now trading near $18.92. Damn. Market must think good things of the company...or just a bunch of yahoos like me want to get into the stock for "fun".

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4240 jeff.brines https://p.vitalmtb.com/photos/users/4240/avatar/c50_149187_936024901533_10205078_50991835_3734911_n.jpg?1321466271 https://www.vitalmtb.com/community/jeff-brines,4240/all 08/29/10 1 7 13 4 https://www.vitalmtb.com/community/jeff-brines,4240/setup 25 563 950 24 7

jeff.brines

8/2/2013 11:32 AM

IPO is slated to price next Thursday (prices wednesday night for trading Thursday). I'll update this when it does. Went through the prospectus and I don't think much will change for these guys. Of the offering, most of it is for holders (company wont get the money). Any capital the company does raise (expected to be 2.9M shares between $13-15/share) will go to repaying existing credit facilities. Point is, its cool to see what they are doing from a financial presppective but its a bummer they aren't doing this IPO to grow...or so it seems initially.

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109 bturman https://p.vitalmtb.com/photos/users/109/avatar/c50_profile_1487817150.jpg?1487816891 https://www.vitalmtb.com/community/bturman,109/all 08/01/09 1095 119 6185 890 https://www.vitalmtb.com/community/bturman,109/setup 286 1533 2654 205 44

bturman

7/30/2013 3:11 PM

Update on the IPO: http://www.bicycleretailer.com/north-america/2013/07/30/fox-would-sell-86-million-shares-raise-120-million#.Ufg5LRYRXCI

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16789 CombatMutt https://p.vitalmtb.com/photos/users/16789/avatar/c50_001_1368318521.jpg?1368318428 https://www.vitalmtb.com/community/CombatMutt,16789/all 06/30/12 1 18 137

CombatMutt

7/9/2013 12:20 PM

When is this happening, anyone know?

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4240 jeff.brines https://p.vitalmtb.com/photos/users/4240/avatar/c50_149187_936024901533_10205078_50991835_3734911_n.jpg?1321466271 https://www.vitalmtb.com/community/jeff-brines,4240/all 08/29/10 1 7 13 4 https://www.vitalmtb.com/community/jeff-brines,4240/setup 25 563 950 24 7

jeff.brines

7/9/2013 3:01 PM

They have to do their road show and wait for market conditions to be "right" (which they are right now). I'd guess anywhere from 6 weeks to 6 months...if at all. Just cause you file doesn't mean it is absolutely going to happen.

(I work for the "Vital" of the finance world...I kid you not)

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1469 ridevt https://p.vitalmtb.com/photos/users/1469/avatar/c50_90538770_1261072004.jpg?1290153519 https://www.vitalmtb.com/community/ridevt,1469/all 12/17/09 1 8

ridevt

7/9/2013 11:35 AM

Meh, public companies have never been good for the Outdoor/Bike market in my experience. Get ready for lots of closeouts from Fox in the next few years!

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10934 Daniel_Layton https://p.vitalmtb.com/photos/users/10934/avatar/c50_1_hand_seat_grab.jpg?1353903048 https://www.vitalmtb.com/community/Daniel-Layton,10934/all 09/26/11 1 https://www.vitalmtb.com/community/Daniel-Layton,10934/setup 9 222

Daniel_Layton

7/9/2013 11:20 AM

not excited about this. Quarterly earning reports are just going to make Fox push out NEW NEW NEW stuff that is all hype (like CTD) and undercut quality to reduce costs and raise earnings in the short run which is diminish the brand in the long run. Sad

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4240 jeff.brines https://p.vitalmtb.com/photos/users/4240/avatar/c50_149187_936024901533_10205078_50991835_3734911_n.jpg?1321466271 https://www.vitalmtb.com/community/jeff-brines,4240/all 08/29/10 1 7 13 4 https://www.vitalmtb.com/community/jeff-brines,4240/setup 25 563 950 24 7

jeff.brines

7/9/2013 11:23 AM

Eh, not so fast. This isn't always the case. Yes, shareholders want to see earnings but we, the market, aren't so dumb as to buy shit that doesn't work. Fox knows this. Lets just hope they take the $120M and do something rad with it. 'Nuff Said.

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10934 Daniel_Layton https://p.vitalmtb.com/photos/users/10934/avatar/c50_1_hand_seat_grab.jpg?1353903048 https://www.vitalmtb.com/community/Daniel-Layton,10934/all 09/26/11 1 https://www.vitalmtb.com/community/Daniel-Layton,10934/setup 9 222

Daniel_Layton

7/9/2013 12:40 PM

Right. That's why CTD was so awesome and did so well. If Fox is already making their product for the lowest common denominator then they def won't do it once shareholders are breathing down their necks about the next quarter's earnings.

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109 bturman https://p.vitalmtb.com/photos/users/109/avatar/c50_profile_1487817150.jpg?1487816891 https://www.vitalmtb.com/community/bturman,109/all 08/01/09 1095 119 6185 890 https://www.vitalmtb.com/community/bturman,109/setup 286 1533 2654 205 44

bturman

7/9/2013 2:11 PM

In case you missed it, the CTD system has been drastically improved for 2014. http://www.vitalmtb.com/features/First-Ride-2014-FOX-Talas-CTD-Fork-and-Float-X-Shock-The-Ultimate-Enduro-Launch,511

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10934 Daniel_Layton https://p.vitalmtb.com/photos/users/10934/avatar/c50_1_hand_seat_grab.jpg?1353903048 https://www.vitalmtb.com/community/Daniel-Layton,10934/all 09/26/11 1 https://www.vitalmtb.com/community/Daniel-Layton,10934/setup 9 222

Daniel_Layton

7/9/2013 3:09 PM

no i saw. And kudos to them for fixing it (but honestly the verdict is still out IMO. i'll wait until there is rider feedback in mass before deciding if it is drastically improved instead of just taking their world for it in early 2013 at a product launch.) It still stands that the temptation is there and they created a lot of hype and a lot of people bought em and are now disappointed and have done damage to the brands reputation. The system was launched prematurely and that's the sort of thing a short term quarterly profit mindset will exacerbate. They are already doing it and it will get worse under shareholder control

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542 bdamschen https://p.vitalmtb.com/photos/users/542/avatar/c50_nicehelmet.jpg?1349375485 https://www.vitalmtb.com/community/bdamschen,542/all 08/17/09 6 3 23 82 2

bdamschen

7/9/2013 2:37 PM

yeah, I don't really see the difference between pressure to push new new new for shareholders vs. pushing new new new every year for interbike. I'd say every mtb company is guilty of that one already

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10934 Daniel_Layton https://p.vitalmtb.com/photos/users/10934/avatar/c50_1_hand_seat_grab.jpg?1353903048 https://www.vitalmtb.com/community/Daniel-Layton,10934/all 09/26/11 1 https://www.vitalmtb.com/community/Daniel-Layton,10934/setup 9 222

Daniel_Layton

7/9/2013 3:10 PM

It compounds it. If they have any freedom to think about the long term of their products quality is is further diminished with the pressure of shareholders.

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4240 jeff.brines https://p.vitalmtb.com/photos/users/4240/avatar/c50_149187_936024901533_10205078_50991835_3734911_n.jpg?1321466271 https://www.vitalmtb.com/community/jeff-brines,4240/all 08/29/10 1 7 13 4 https://www.vitalmtb.com/community/jeff-brines,4240/setup 25 563 950 24 7

jeff.brines

7/9/2013 8:06 AM

Nice post B Stoked to see a company raise some real money in the equity markets. Lets hope they put it to great use!!

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8113 Beezkneez /images/default/avatar/c50.png https://www.vitalmtb.com/community/Beezkneez,8113/all 05/13/11 32 https://www.vitalmtb.com/community/Beezkneez,8113/setup 25 90

Beezkneez

7/9/2013 6:54 AM

Seems a little high on the debt to income ratio.

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16789 CombatMutt https://p.vitalmtb.com/photos/users/16789/avatar/c50_001_1368318521.jpg?1368318428 https://www.vitalmtb.com/community/CombatMutt,16789/all 06/30/12 1 18 137

CombatMutt

7/30/2013 6:59 PM

You're looking at the total debt, which is high, but the profit report was only for last year. If Fox gets 120mil, then that debt gets erased and you're looking at some really sweet product.

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559 Mwood https://p.vitalmtb.com/photos/users/559/avatar/c50_91824930_1254599170.jpg?1290151111 https://www.vitalmtb.com/community/Mwood,559/all 08/19/09 2 12 https://www.vitalmtb.com/community/Mwood,559/setup 1 48 118

Mwood

7/9/2013 1:50 AM

Awesome to see VitalMTB surveys used in a public offering Statement. These surveys can be a stepping stone for actually useful customer data collection for marketing and the government...

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109 bturman https://p.vitalmtb.com/photos/users/109/avatar/c50_profile_1487817150.jpg?1487816891 https://www.vitalmtb.com/community/bturman,109/all 08/01/09 1095 119 6185 890 https://www.vitalmtb.com/community/bturman,109/setup 286 1533 2654 205 44

bturman

7/9/2013 9:47 AM

Cheers to all of you for participating!

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20866 scarface https://p.vitalmtb.com/photos/users/20866/avatar/c50_scarface.jpg?1357726002 https://www.vitalmtb.com/community/scarface,20866/all 01/09/13 2 2 45 151

scarface

7/9/2013 12:27 AM

Sweet. Now you can buy a shitload of shares, then when your fork is sticky you can just complain to yourself and cut out the whole unnecessary bit in the middle with all the retailers and the service department etc.

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26249 Calvin_Smith https://p.vitalmtb.com/photos/users/26249/avatar/c50_fb_picture_100004621922667_1373352107.jpg?1373351808 https://www.vitalmtb.com/community/Calvin-Smith,26249/all 07/08/13 1

Calvin_Smith

7/8/2013 11:37 PM

Y don't you ride fox?? Fox makes the best mtb suspension out there!!!

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14109 Nicholast https://p.vitalmtb.com/photos/users/14109/avatar/c50_avatar92.jpg?1366320727 https://www.vitalmtb.com/community/Nicholast,14109/all 03/14/12 1 https://www.vitalmtb.com/community/Nicholast,14109/setup 6 50 397 2

Nicholast

7/9/2013 2:08 PM

They do make some good products, but "best" is a stretch.

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6576 Big Bird https://p.vitalmtb.com/photos/users/6576/avatar/c50_SmileySmall.jpg?1320728633 https://www.vitalmtb.com/community/Big-Bird,6576/all 02/01/11 16 66 1722 3919 16

Big Bird

7/8/2013 11:22 PM

I don't eat Mac Donalds, I don't drink Starbuks and I don't ride Fox.

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