Winemaker Winc targets $263 million valuation in U.S. IPO

(Reuters) - Winc Inc is looking to raise $80 million in an initial public offering in the United States, according to a regulatory filing on Wednesday, with the winemaker targeting a valuation of about $263 million.

The Santa Monica, California-based company plans to sell 5 million shares of its common stock in the IPO, priced between $14 and $16 per share.

Originally launched as Club W in 2011 and rebranded in 2016, Winc’s portfolio of brands include “Lost Poet” and “Folly of the Beast”. The company also operates a wholesale channel, besides selling products directly to consumers.

Beginning March 2020, as public venues shut due to the coronavirus outbreak, the company saw an increase in demand from consumers primarily due to remote working which forced people to spend more time at home, Winc said in its prospectus.

Winc’s main revenue driver is its direct-to-consumer (DTC) channel, through which the company sells its products online.

The winemaker gives customers a discounted first purchase, typically consisting of a four-bottle order, after which it encourages them to sign up for a membership.

To collect predictable revenue each month, Winc charges a monthly subscription fee in return for credits, which can be used to purchase products on its online channel. Unused credits roll over each month and never expire.

It competes with the likes of Constellations Brands Inc and Duckhorn Vineyards, the brand owned by Duckhorn Portfolio Inc .

BofA Securities and Canaccord Genuity are among the underwriters for the offering, after which Winc expects to list on the New York Stock Exchange under the symbol “WBEV.”

Reporting by Sohini Podder and Niket Nishant in Bengaluru; Editing by Shailesh Kuber