Argentine soccer legend Lionel Messi’s clothing brand The Messi Store made its U.S. market debut on Friday, with the stock rallying more than 200% before plunging below its original price when the market closed.
MGO Global Inc. (MGOL), operator of The Messi Store, the clothing brand of Argentine soccer star Lionel Messi, sold only 1.5 million shares to the public, although trading was halted several times during the session. morning when investors flock to Messi’s brand.
The company opened for trading on Friday in a $7.5 million initial public offering for $5. Based in Florida, MGO was founded in 2018 and started The Messi brand a year later.
Ginny Hilfiger, youngest brother of fashion designer Tommy Hilfiger, co-founder of MGO Global. Brands focus on “capitalizing” reputation into potential retail opportunities.
“We are a company with a performance-driven lifestyle brand portfolio focused on strategically leveraging the reputation, celebrity power, and global social media influence of brands. world-class athletes, entertainers, and other cultural icons to create fresh, modern and appealing clothing products and brands that go well together. with and inspired by the values, personal styles and aspirations of our valued brand partners,” the company Written on its investor relations page.
Messi’s name may have had an impact on the stock. Less than a month ago, the 35-year-old led Argentina to its first World Cup title in 36 years and received the Ballon d’Or, awarded to the tournament’s best player.
The popularity surrounding Messi has increased since then. Messi’s Adidas (ADDYY) Argentina shirt Sold out and his Instagram post raising the FIFA World Cup is now the most liked Instagram post ever with over 74.7 million likes.
However, it is unclear whether Messi’s popularity can help the company recover financially. MGO reported declining annual revenue for the first three quarters of 2022 in its report S-1 file. After posting revenue of $557,641 for the first nine months of 2021, revenue fell to $336,103 for the first nine months of 2022.
“There is considerable doubt about our ability to continue to be an ongoing concern given our historical recurring losses and negative cash flows from our operations, as well as our reliance on capital.” equity and private finance,” the company admitted when addressing the risks in its filing.
Shares of MGO Global ended the day down 7%.
Josh is a reporter and producer for Yahoo Finance.