If you're looking for a home furnishings retailer that offers quality products and value for your money, Ikea is a great option. But can you invest in Ikea stock?
Let's take a closer look at this question.
Can you invest in Ikea stock?
No, you can't invest in Ikea stock. This is because IKEA is a privately held firm, it is not currently listed on any stock exchange.
Who owns Ikea?
The Stichting INGKA Foundation, which was formed by IKEA founder Ingvar Kamprad. This foundation owns 86% of Ikea stores. Ikea's brand assets such as trademarks are owned by another Ikea firm.
That firm is run by another foundation based in Liechtenstein. This ownership structure is saving Ikea millions of dollars in tax payments each year. Ikea has been owned by Ingvar Kamprad and his foundations since Ikea was founded on July 28, 1943, in Älmhult, Sweden. The Swedish business icon passed away in 2018 leaving the Ikea brand to his family and foundations.
Does IKEA have stock?
No, IKEA does not have stock. IKEA is a privately held company and does not issue stocks or shares to the public. Instead, IKEA is owned by Ingvar Kamprad's foundations and his family. However, there are some ways that you can invest in IKEA without buying stock.
Can I invest in Ikea in any other way?
One way is to invest in IKEA suppliers. Some of IKEA's major suppliers might be publicly traded companies, which means that you can buy shares in them. This is a good way to invest in IKEA indirectly. You'd have to do some deeper research and pick apart their entire business model to find opportunities relating to Ikea.
Another way to invest in IKEA is to buy shares in Ikea's parent company, Ingka Holding BV. Ingka. They are not a publicly-traded company but if you have a large investment firm and can negotiate well, you may be able to gain equity.
This is highly unlikely though as they are known to retain full ownership of the company. Unfortunately, it may not be possible for investors to gain any equity in Ikea or its business operations but there are a few competitive stocks you can look at.
Here is a list of publicly-traded home furnishing companies that are similar to Ikea:
- Wayfair (NYSE: W)
- Bed, Bath and Beyond (NASDAQ: BBBY)
- Walmart (NYSE: WMT)
- Amazon (NASDAQ: AMZN)
- Home Depot (NYSE: HD)
- Bassett Furniture Industries (NASDAQ: BSET)
Is IKEA a publicly-traded stock?
In 2020, IKEA generated revenues of $36.9 billion. Many people believe that a company this large would be publicly traded but for Ikea, that is not true. IKEA is not a publicly-traded stock.
Does Ikea have any plans for an IPO?
IKEA will not be going public or offering an IPO in the foreseeable future, according to a source close to the company. This can be upsetting for the brand advocates looking to gain equity in the company.
Reasons are unclear as to why they are not planning for an IPO. Some speculative reason is that Ikea is still expanding rapidly into new markets and they may not want the added pressure of being a publicly-traded company. Ikea could also be holding out for a higher valuation before going public.
They could also just wish to remain private because it has worked so well for them up to this point. Ikea's ownership structure gives the Kamprad family significant control over the company without having to answer to public shareholders.
Ikea is a great company with a strong brand, and, understandably, some people would want to invest in its stock. However, Ikea is a privately held firm, so it is not possible to invest in Ikea stock. Ikea may never go public, but that doesn't mean you can't enjoy its affordable and stylish home furnishings.
Do companies need to IPO to be successful?
Ikea proves that companies don't have to be publicly traded to become successful brands. Although being a publicly-traded company has its benefits such as raising capital, Ikea has managed to stay private and grow steadily over the years.
This Swedish entrepreneurial story is a great example and case study for other company owners to replicate if they would like to retain full ownership. Ikea is also a great example of how to grow organically and maintain control over the company culture.
Can Ikea succeed without going public?
The Ikea story shows that a successful brand can be built without having to go public. Ikea has managed to stay private but will that change as competition ramps up? Ikea is the largest furniture retailer in the world and has a strong brand name, but it will be interesting to see if they go public to raise more capital.
What are the benefits of an Ikea stock IPO?
There are a few key benefits of being a publicly-traded company, which Ikea is not. One key benefit is the ability to raise capital through selling stocks and bonds. This gives companies the funds they need to expand their businesses, hire more employees, and make other investments.
Another benefit is that public companies are subject to more regulations that help protect investors. Finally, being a public company gives a company more credibility and can help them build relationships with other businesses.
What are the drawbacks for Ikea if they went public?
There are also a few key drawbacks to being a publicly-traded company. One key drawback is that public companies are required to disclose their financial information, which can be harmful if the company is doing poorly.
Another drawback is that public companies are more vulnerable to lawsuits and activist investors. Finally, going public can be expensive and time-consuming, which could divert management's attention away from running the business.
Can you invest in IKEA stock? (summary)
IKEA was the world's fourth most valuable home furnishing store. It is valued at approx. 48.1 billion dollars. IKEA has 445 retail locations in 49 different nations. They also operate in 50 e-commerce markets (2020).
They are not a publicly-traded company, so you can't invest in Ikea stock. You can, however, attempt to invest in IKEA suppliers. Some similar companies to Ikea are Wayfair (W), Bed Bath and Beyond (BBBY), Walmart (WMT), and Amazon (AMZN).
These stocks may be more accessible to the average person than trying to buy equity in Ikea itself. Ikea has no plans for an IPO at this time. Reasons, why they have not gone public, are unknown. But it could be speculated that it is because of their rapid expansion into new markets or holding out for a higher valuation before going public, or simply not needing to.
The Kamprad family currently retains control over the Ikea brand without having to answer to public shareholders. Ikea is a great company, and even though you can't invest in Ikea stock, you can still enjoy its affordable and stylish home furnishings. Ikea may never go public, but that doesn't mean you can't support the company in other ways.
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