Winc set terms for its initial public offering, becoming the latest wine company to tap the public equity markets.
Winc said Wednesday that it plans to sell five million shares at $14 to $16 each. The Santa Monica, California, company will trade on the New York Stock Exchange under the ticker WBEV. BofA Securities and Canaccord Genuity are underwriters on the deal.
At $16, Winc’s valuation could hit $263 million.
The Winc IPO comes roughly seven months since luxury wine producer Duckhorn Portfolio (ticker: NAPA) went public in March at $15 a share.
Formed in 2011, Winc produces and distributes wine. The winery sold over 430,000 cases of wine in 2020, fueled by the Covid-19 pandemic that caused people to stay-at-home and restaurants to close. Brands include Summer Water, Lost Poet, Wonderful Wine Co., Chop Shop and Folly of the Beast, the prospectus said.
Winc is known for its subscription service in which users sign up for wine delivery. Customers can receive four bottles each month at an introductory price of $29.95, according to the Winc website. The company had 120,000 members as of June 30, the prospectus said. Nearly 76% of Winc’s total net revenues for the six months ended June 30 came from its direct to consumer channel. Winc’s wholesale channel represented 22% of revenue, the prospectus said.
Losses for the company narrowed to $3.3 million for the six months ended June 30 from $3.7 million in losses for the same period in 2020. Revenue rose 20% to $35.1 million for the June 30 period, the prospectus said.
Winc has raised $54.2 million in funding, Crunchbase said. Bessemer Venture Partners, a venture-capital firm, will own about 10% after the IPO, the prospectus said.
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