Some of Fender’s guitars are considered priceless, but they’ll sell you a share of the company for $13 to $15.
Fender Musical Instruments — whose electric guitars have been played by legendary rockers including Jimi Hendrix, Eddie Van Halen and Kurt Cobain — said it expects to launch an initial public offering that values the company at about $395 million.
The IPO, for which Fender initially filed in March, is targeted to raise as much as $160.5 million by selling 10.7 million shares at a price of $13 to $15, Fender said in securities filings yesterday.
The company plans to list its shares on the Nasdaq under the symbol FNDR.
Founded in the 1940s by pioneering electric luthier Leo Fender, the Scottsdale, Ariz., company said it distributes its axes in 85 countries.
Executives aim to grow the business worldwide as demand for electric guitars increases in emerging markets like China and India.
The targeted valuation is about 20 times the company’s net income last year. In 2011, Fender swung to a profit of $19 million from a year-earlier loss of $1.7 million. Full-year revenue rose 13 percent to $700.6 million.
In the most recent quarter, revenue rose 2.2 percent to $176 million.
Western Presidio, a private-equity firm that is Fender’s largest shareholder, will sell 3.5 million shares in the IPO, reducing its ownership stake to 17.7 percent from 43 percent.