Stock of messi-tied clothes jumps over 200% after IPO
The Messi Store, the clothing brand of Lionel Messi (Argentinian soccer legend) made its debut in the U.S. on Friday. The stock soared more than 200% before dropping below its initial price by market close.
MGO Global Inc.MGOL), the operator of The Messi Store, Argentinian soccer star Lionel Messi’s clothing brand, sold just 1.5 million shares to the public, though trading was halted multiple times during the morning session as investors flocked to Messi’s brand.
Friday saw trading open in a $7.5million initial public offer priced at $5.00. MGO is based out of Florida and was established in 2018. The Messi brand was launched a year later.
Ginny Hilfiger is the youngest sister of Tommy Hilfiger’s fashion designer. She co-founded MGO Global. MGO Global is focused on “leveraging” fame to create potential retail opportunities.
“We are a performance-driven lifestyle brand portfolio company focused on strategically leveraging the fame, celebrity power and global social media influence of world-class athletes, entertainers, and other cultural icons to create fresh, modern, and compelling product and apparel brands aligned with and inspired by the values, personal styles, and aspirations of our valued brand partners,” the company wrote Visit its investor relations webpage.
Messi’s name has likely had an impact on the stock. The 35-year old led Argentina to its first World Cup win in 36 years, less than a month after it was founded. He also won the Golden Ball honors, which are awarded to the tournament’s best player.
Since then, Messi has become more popular. Messi’s Adidas (ADDYY) Argentina jersey sold out And his Instagram photo holding up the FIFA World Cup Trophy has been viewed more than 74.7 millions times.
However, it is unclear whether Messi’s popularity could help the company to rebound financially. MGO reported that its annual revenues fell in the first three quarters 2022. S-1 Filing. After posting revenue of $557 641 for the first nine month of 2021 revenues dropped to $336 103 for the first nine-months of 2022.
“There is substantial doubt regarding our ability to continue as an ongoing concern as a result of our historical recurring losses and negative cash flows from operations, as well as our dependence on private equity and financings,” the company conceded when addressing risks in its filing.
MGO Global shares ended the day with a 7% drop.
Josh is a Yahoo Finance reporter and producer.
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