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Malibu Boats shares jump on first day of trading

Shares of ski-boat manufacturer Malibu Boats gained 27 percent Friday after beginning trading on the Nasdaq.

The company, trading under the symbol MBUU, was the best non-biotech performer on the stock market, according to Renaissance Capital. Six companies went public Friday, which is more activity than 99 percent of trading days see, according to 24/7 Wall Street.

The Loudon, Tenn.-based boatbuilder raised about $100 million, according to Bloomberg Businessweek. It plans to use the money it nets to repay debt and for other business purposes. Shares rose $3.75, or 27 percent, to $17.75.

The company initially priced 7.142 million shares at $14 a share, in the mid-point of the $13 to $15 range, according to 24/7 Wall Street.

Some 6,743,744 shares were sold by the company, with the remaining from holders. Raymond James and Wells Fargo were the book-runners, and SunTrust Robinson Humphrey and BMO Capital Markets were the co-managers.

The offering is expected to close on Wednesday, according to Nasdaq.com.

Canada's BRP Inc., the maker of Sea-Doo jet skis, raised about $294 million in its May 2013 debut, followed by a pair of stock offerings in September and this month valued at $216 million and $240 million, respectively, according to a Wall Street Journal report.

B. Riley analyst Jimmy Baker told Trade Only Today after Malibu’s Dec. 13 bid to go public that his company is bullish on recovery prospects in the tournament ski and wakeboard market. “It’s a favorable time to be IPO-ing in the leisure space. The sector is very much en vogue [and] is offering attractive valuations for issuers.”

Malibu’s filing for an initial public offering with the Securities and Exchange Commission said the company has held the No. 1 market share position among U.S. performance sportboat manufacturers for nearly four years.

Malibu’s 40.1 percent market share of performance sportboat exports to international markets in the 12 months that ended Sept. 30, 2013, was the highest among U.S. manufacturers, the company said in its SEC filing.

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