If you love sneakers and streetwear, you might be well-versed with Hypebeast. This is a Hong Kong-based company that manufactures sneakers and streetwear. It is a household name in Hong Kong and the entire East Asia region. The 16-year old company is better-known for setting the standards in the streetwear fashion industry, but it's also involved in technology, sports, art and food. The company prides itself in identifying emerging trends in culture and lifestyle to create an eco-system that promotes cultural discovery and connection.
Hypebeast Reverse Merger
The company is planning to list on the Nasdaq by merging a SPAC with an already-listed company Iron Spark. The merger will see the new entity listed on the Nasdaq with an already-identified ticker "HYPE". Merging a profitable or high-potential company with a public company that is not doing so well is the cheapest way of taking a company public. This is because the cost of taking a company public through an IPO is beyond the reach of many businesses. Through the merging of the SPAC and the public company, Hypebeast will become a publicly-listed company. It is important to note that the company is already listed on the Hong Kong Stock Exchange, so it will be dual listed on the two major exchanges.
What Products and Services Does the Company Offer?
Founded by Kevin Ma in 2005, Hypebeast was originally just a sneaker blog. The company has now grown to be an e-commerce and digital media company that focuses on lifestyle, culture and fashion. It mainly focuses on streetwear fashion. The company has grown to become one of the trend-setters in Hong Kong.
Who is Involved in the SPAC?
The Hypebeast Reverse merger deal is backed by a star-studded pool of investors, including Naomi Osaka - the tennis star, Tom Brady - the famous quarterback, Kevin Durant - NBA star, Rich Kleiman, Adam Levine, Joe Gebbia and Tony Hawk among other stars.
Hypebeast by the Numbers
Hypebeast is a highly profitable company with over $112 million in annual revenues. The company has 26 million followers on social media and over 18 million unique visitors every monthly. The reverse merger will give the new entity an equity value of $534 million with an enterprise value of $353 million.
What They Are Saying
The numbers show that Hypebeast is a profitable company that was hidden in plain sight. With company discipline, cultural significance of the brand and the huge number of stars who back the company, Hypebeast is seen to have great future prospects. Everyone is watching the products and services the company will come up with in the future. Others will be watching movements in stock prices once the merger has been finalized.
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