Weber Grills plans to launch a new line this year that will redefine propane grilling, CEO Chris Scherzinger told CNBC on Thursday ahead of the company’s listing.
On Squawk on the Street, Scherzinger said the internet connected line will be able to measure propane levels, warn users when the tank is low, and “you refill.”
“You can now have a whole new business model for Weber that drives subscriptions, customer loyalty between grilling experiences, all sorts of new ways we can take this category,” Scherzinger said, adding that the company plans to introduce the new “game “to introduce. Money changer “in about three months.
Weber shares, which are traded on the New York Stock Exchange under the ticker symbol “WEBR”, gained more than 16% on Thursday morning. Weber’s debut comes about a week after rival grill maker Traeger raised $ 424 million in its initial public offering.
Weber raised around $ 250 million in its IPO on Thursday and sold about 17.9 million shares at $ 14 each, according to a company statement. That’s less than half the amount the company was looking to raise last month when it announced plans to sell 46.88 million shares at $ 15-17 each, up to $ 797 million on a valuation brings in about $ 5 billion.
“We do not really concentrate on the everyday or the bumps and the noise. We are geared towards the long term,” said Scherzinger when asked about the reduced IPO. “We’re investing in growth and the investors we’ve spoken to are very excited about the future of our runway.”
Weber sells gas, electric and charcoal grills. It is based in Illinois, operates in 78 countries around the world, and has 4,710 global retail partners. For the six months ended March 31, Weber posted sales of $ 963.3 million, 62% more than the same period last year. Net income for the half year also increased 213% year over year to $ 73.8 million.
Scherzinger said the company’s direct-to-consumer and e-commerce initiatives now account for over 20% of the company’s business and generated more than 65 million visitors to its website last year. Since 2018, Weber’s direct-to-consumer business has seen an average annual revenue growth rate of 47%, according to filings with the SEC.
“We have an average of three times the lead over number 2 in each country by a large margin, and in each country it is a different number 2,” said Scherzinger. “It has driven double-digit sales growth for 70 years and we look forward to a really long runway with a $ 49 billion market ahead of us.”
– Reuters contributed to this report.