The media and e-commerce group Hypebeast Ltd. is about to go public in New York. The company, which has been listed on the Hong Kong Stock Exchange since 2016, announced on Tuesday that it would acquire Iron Spark I Inc. for this purpose. Iron Spark is a so-called Special Purpose Acquisition Company (SPAC), i.e. an already listed company that was founded specifically as a vehicle for the IPO of other companies. Both companies have entered into a binding agreement on the proposed merger, Hypebeast said.
Hypebeast expects gross proceeds of approximately US$180 million (€165 million) from the combination with Iron Spark. Pro forma future enterprise value of the transaction is estimated at $353 million. As part of a capital increase, celebrities from the sports and media industries such as football star Tom Brady, tennis player Naomi Osaka and skateboarding legend Tony Hawk have already invested in the company, Hypebeast announced.
The merger still has to be approved by the current shareholders of Hypeaster and Iron Spark. The transaction is expected to be completed in the third quarter of 2022. Hypebeast’s executive duo, consisting of Executive Director, Chairman and CEO Kevin Ma and CFO Patrick Wong, will remain in office after the merger, according to a statement. Iron Spark CEO Joshua Spear and former Nike executive Trevor Edwards are candidates for the future board of directors of the combined company.
Kevin Ma founded Hypebeast in Hong Kong in 2005. The media and trading company specializing in men’s fashion and streetwear has been listed on the local stock exchange since 2016. In recent years, the group has achieved remarkable growth: from 2015 to 2021, sales increased by an average of 34 percent per year, Hypebeast said. Revenues of at least US$112 million are expected for the 2021/22 financial year, which ended at the end of March.
Founder and CEO Ma hopes the New York IPO can open up more perspectives: “With access to new capital and new talent, we will expand our universe of content, commerce and experiences in ways that strengthen our business and community.” , he explained in a statement.