Whenever you think of furniture, the first thing to come to your mind would be IKEA. IKEA is the most prominent place to purchase furniture and it has only become more eminent in recent years. But, have you ever wanted to invest in IKEA? In this article, we will explain if you can invest in IKEA Stock and whether you should invest here.
WHAT IS IKEA?
IKEA is a multinational furniture company founded in Sweden and headquartered in Germany. It sells ready-to-assemble furniture, kitchen and home appliances, and other accessories. In recent years, IKEA has also expanded to other products as well, such as food. IKEA has been the world’s most prevalent retailer for furniture since 2008. As of 2020, the company is estimated to be at a worth of almost $45.4 billion.
IKEA was established by a 17-year-old, Ingvar Kamprad, in 1943 and has made him the 8th richest person in the world. IKEA is actually an acronym for the name of the founder, Ingvar Kamprad, the name of the farm he was born at, Elmtaryd, and the name of his hometown, Agunnaryd. IKEA is renowned for its modern and minimalistic furniture and appliances, combined with its inexpensive costs and premium-quality materials.
IKEA has almost 445 stores in 52 countries across the world and also showcases over 12,000 products on its website. INGKA, a company under Stichting INGKA Foundation, owns most of the IKEA stores all over the world. As of 2018, INGKA made almost 90% of all the revenue made by IKEA.
CAN YOU INVEST IN IKEA?
Unfortunately, IKEA is a privately-owned corporation, which means that you can’t purchase any stocks for it, as it does not depend on any outside investors. This also means that IKEA’s shares are restricted to investors or anyone outside of the corporation. However, this also means that IKEA won’t be influenced by any changes to the stock market or if there is a decline in transactions.
Also, IKEA does not have to provide any dividends to its share-holders. However, this would also make it incapable to acquire funds and expand their business. Some of world’s dominant companies went public in the past and have been recorded in the stock market. And, they only went up from there! Some examples of such companies are Microsoft (MSFT) and Apple (AAPL).
It seems that it’s time that IKEA went public. There have been many companies that went public in recent years and they have only seen more revenue since then. Perhaps, IKEA should consider this prospect, as their competitors, such as Walmart and Amazon, have only taken the chance.
IKEA has only advanced in the past few decades and this could be a massive step for the company in the correct direction. Being one of the most prominent companies in the world, there are millions of investors that want to invest in the company. It is only a matter of the decision from IKEA to become a publicly-traded corporation.