Massimo Group, a Garland-based motorsports company that manufactures and distributes off-road vehicles, boats and more, is looking to raise more than $6 million in an initial public stock offering on the Nasdaq.
Massimo plans to offer 1.3 million shares in a range between $4 to $5 by Monday. That would give the company a market value of $186 million, according to IPO tracking firm Renaissance Capital.
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The stock sale will help Massimo expand business operations at its 286,000-square-foot facility in Garland and beyond, according to a Securities and Exchange Commission filing supporting the IPO. Its 122 employees make and distribute everything from utility task vehicles and all-terrain vehicles to motorcycles, scooters, golf carts, go-karts and motor boats.
The company plans to spend the money on hiring, marketing, establishing more assembly and distribution lines across the country, and research and development. Growth plans include more distribution centers in California and the southeast U.S., said the company’s CEO David Shan.
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Massimo Group CEO David Shan (left) and vice president Mike Smith are surrounded by some of…
Massimo Group CEO David Shan (left) and vice president Mike Smith are surrounded by some of the company’s motorsports vehicles. (Chitose Suzuki / Staff Photographer)
“You can feel that the industry has changed in the last 10 years. There’s a new generation and culture that wants electrification,” Shan said. “We also have older people that have the money and want to buy new vehicles. So over the next five years, we feel that … is in our future.”
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Massimo has already expanded into more environmentally friendly products like e-bikes, electric pontoon boats, electric vehicle chargers, portable solar panels, electric coolers and power stations.
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Massimo, founded in 2009, said it expects last year’s revenue to total $103.5 million to $126.5 million. That’s up from $86.5 million in 2022.
Profit in 2023 should be between $9.8 million and $10.9 million, according to the company. That’s more than double its 2022 net income of $4.1 million.
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Increases in land vehicle and pontoon boat sales and more retail stores carrying Massimo products account for the higher revenue, the company said. It sells its products in some of the nation’s largest retailers, including Lowes, Home Depot, Walmart, Costco, Sam’s Club and Tractor Supply Co.
“With what we’ve been doing over the last couple of years with expanding our footprint, we’re looking to add [inventory] within that footprint so we can capitalize on our market share,” said Massimo vice president Mike Smith. “We already have some great partners, so whether you’re an investor or a customer, there are good reasons to invest. People want to get value for their money and I think people will realize soon that Massimo is the way to go.”
If opportunities exist, Massimo might look to acquire a manufacturing facility or open a plant. Money raised from its IPO may also be enough to yield acquisitions or consolidations in the industry, the filing said.
Massimo Group Vice President Mike Smith discusses the company’s upcoming IPO at its offices…
Massimo Group Vice President Mike Smith discusses the company’s upcoming IPO at its offices in Garland. (Chitose Suzuki / Staff Photographer)
Shan, a self-proclaimed byproduct of the American dream and motorcycle enthusiast who immigrated to the United States in 1994, will still hold more than 80% of the company’s voting power after the IPO. Although the company wants to grow nationally, keeping a stronghold in Texas remains important, Shan said.
“I think we’re definitely looking at the West and East coasts, of course, for potentially different warehouses and distribution centers,” he said. “But our offices will stay in Texas and we want to keep hiring more employees from Dallas.”
Beyond intense competition with giants like Honda, Yamaha, Polaris and others, the company faces other challenges that may make its IPO a tough sell for some investors.
