MGO Global Inc., which manages the clothing and lifestyle brand for football star Lionel Messi, more than tripled in its US market debut on Friday before erasing the runup entirely.
(Bloomberg) — MGO Global Inc., which manages the clothing and lifestyle brand for football star Lionel Messi, more than tripled in its US market debut on Friday before erasing the runup entirely.
Shares fell below the $5.00 offering price hours after trading as high as $16.61 — a 232% jump — in the first session after the firm’s $7.5 million initial public offering. The stock was halted for volatility multiple times, including shortly after opening at $8.60 — a 72% surge in its first trade.
Messi, the talisman of the Argentina national football team, recently lifted the World Cup at age 35 which spurred historic celebrations across the country. MGO cites contributors from Messi’s own hometown of Rosario in Argentina as well as more notable fashion hubs London and Barcelona.
Read more: Messi’s World Cup Win Spurs Rapture in Beleaguered Argentina
MGO was founded in 2018 and launched its flagship Messi Brand in 2019. It generated a net loss of $906,326 in 2021 on $880,000 of revenue, according to the IPO filing. Messi, who is not a disclosed shareholder, instead receives royalty payments that comprise 12% of net sales, based on the filing.
The firm was co-founded by Ginny Hilfiger, the youngest sibling of fashion designer Tommy Hilfiger. She holds about a 30% stake in the firm following its IPO, according to the prospectus.
Boustead Securities and Sutter Securities underwrote the IPO.
–With assistance from Sunil Kesur.
(Updates to add the latest trading. Previous updates added additional details about the company.)
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