News Column

BRIEF: Malibu Boats IPO off to strong start

January 31, 2014

By Roger Harris, The Knoxville News-Sentinel, Tenn.

Jan. 31 -- Loudon -based Malibu Boats had smooth sailing on the first day of its initial public offering. Shares closed Friday at $17.75 , up from an opening price of $17.30 . More than 5.1 million shares were traded on the opening day, putting the company on pace to reach its goal of raising more than $100 million . The company said it would offer 7.1 million shares. The IPO is expected to close on Wednesday. The maker of watersports towboats was one of six initial public offerings on Friday. The others included a California homebuilder, three biotech companies and a Colorado ski resort owner. Malibu trades on the Nasdaq market under the symbol MBUU. The recession hammered many boat manufacturers, but Malibu gained market share during the economic downturn. In recent years as sales and gross margins have improved, the company's earnings have increased, according to a Wall Street Journal MarketWatch report. Malibu has introduced several new products recently, including its SurfGate technology, which received a second patent last September. The company, founded in 1982, offers two brands of performance sport boats -- Malibu and Axis Wake Research . ___ (c)2014 Knoxville News-Sentinel (Knoxville, Tenn.) Visit the Knoxville News-Sentinel (Knoxville, Tenn.) at Distributed by MCT Information Services

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Source: Knoxville News-Sentinel (TN)

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