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Piano builder Steinway to go public through IPO in New York

The 169-year-old piano builder was founded in New York City by a German immigrant

Investment firm Paulson and Co, founded by billionaire John Paulson, acquired the master piano maker in 2013

Fri Apr 15 2022 - 08:42

Steinway Musical Instruments Holdings, the 169-year-old piano builder founded in New York City by a German immigrant, has filed to go public through an initial public offering.

The company, based in the city’s Astoria neighborhood, plans to sell shares on the New York Stock Exchange, according to a Thursday filing with the US Securities and Exchange Commission.

Investment firm Paulson and Co, founded by billionaire John Paulson, acquired the master piano maker in 2013. The company has attracted takeover interest over the years including a $1 billion (€930 million) offer from Chinese state-owned company China Poly Group in 2018.

Proceeds of the offering will go to selling shareholders including Paulson, who will control more than half of the company’s voting power after the listing, the prospectus showed.

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Luxury goods spending has held up during the coronavirus pandemic, Steinway noted, with net sales increasing 30 per cent year-over-year in 2021 to $538 million. Net income rose 14 per cent to $59 million.

Steinway has added company-owned retail showrooms and now has 33 in the US, Europe and Asia. Those stores have added to the company’s sales and profitability, according to the filing.

And when it comes music, celebrity names still count.

“Many musical greats have endorsed the quality of our instruments and personally use our instruments on the brightest stages,” the company said in the prospectus.

“Some of the biggest classical and pop icons of today, including Lang Lang and Billy Joel, and jazz legends such as Ahmad Jamal and McCoy Tyner, all chose Steinway time and again as the desired instrument to express their art.”

Henry Engelhard Steinway founded the company in a Manhattan loft in 1853. Its factories are located in Astoria and Hamburg, Germany. The prices of its grand piano range from $60,000 to $340,000, the prospectus showed.

Goldman Sachs Group, Bank of America, and Barclays are leading the offering. Steinway plans to list on the New York Stock Exchange under the symbol STWY. – Bloomberg

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