IKEA Group grew to multinational status after being founded by 17-year-old Ingvar Kamprad in a small Swedish town back in 1943. The brand is now world-renowned, and has become synonymous with highly durable flatpack furniture that does not sacrifice style or affordability.
Unfortunately for investors, there is no way to invest in IKEA Group or its parent company, Stichting INGKA Foundation. IKEA is a private company that is fully owned by the Kamprad family to this very day.
There remains a small possibility that INGKA Foundation will announce an IKEA IPO date at some point in the future; however, this may be unlikely. This article will cover the complexities of the IKEA Group business model and discuss whether or not an IKEA IPO date is likely any time soon.
About IKEA
IKEA was founded in 1943 by a 17-year-old called Ingvar Kamprad who began to sell everyday items such as pens and wallets from the province of Småland in Sweden. From these humble beginnings, the company extended outward from its provincial Swedish roots and became a world-renowned brand that is now famous for selling high-quality flatpack furniture.
IKEA first began selling furniture in 1948. From this time, the company’s ethos was to deliver quality goods at affordable prices, with Kamprad quoted as saying that low overhead costs enabled IKEA to offer better prices than anywhere else. In 1953, Kamprad noticed the growing popularity of flatpack furniture and the company began to deliver its items in small packages with home assembly instructions, which helped IKEA to reduce its overheads even further.
Flatpack furniture reduces transportation costs and improves convenience for the customer, creating a recipe for success that, when coupled with attractive interior design and quality materials, was able to lead IKEA to multinational status. By the 1970s, IKEA had expanded to four continents with stores in Australia, Canada, Hong Kong, Japan, Switzerland, Netherlands, Germany, Austria, and Singapore, as well as in Scandinavia.
IKEA now operates under a franchise system where the brand belongs to Inter IKEA Systems — a subsidiary company of Stichting INGKA Foundation. Kamprad opted to modify the business model to the current structure in the 1980s, with the aim of creating “eternal life” for IKEA.
IKEA’s YoY annual revenue figures have increased in 21 out of the past 22 years, with the only exception being 2020 when the COVID pandemic hit. IKEA has remained a highly robust business model through all stages of the market cycle, growing during the financial crisis of 2008 and during the post-recession recovery phase in the decade that followed.
IKEA Group, annual revenue 2001-2022, via Statista
How to invest in IKEA?
It is not currently possible to invest in IKEA, as 100% of IKEA Group’s shares are owned by its parent company, Stichting INGKA Foundation (also known as the INGKA Group). The Ingka Group includes several subsidiary companies that effectively split IKEA’s business operations into several independent businesses.
Unfortunately, none of the companies in the INGKA Group are publicly traded. This means that there is no way to invest in IKEA directly, nor by gaining exposure to one of its relatives under the INGKA Group umbrella.
Stichting INGKA Foundation remains firmly in the control of the Kamprad family. IKEA has been a family-run operation since it was founded in the early 1940s, and as things stand, this does not look likely to change.
Will there be an IKEA IPO?
There are currently no plans for an IKEA IPO. The INGKA Foundation may decide to launch a public offering for IKEA if it decides, but the company’s restructuring to a franchise system may mean that this is unlikely.
Anyone can open their own IKEA store, granted they have enough capital and can find a suitable location to open up shop. This structure means that INGKA Foundation gains outside investment by default, and global growth is not wholly dependent on revenues generated by shop sales.
This set-up, coupled with the fact that IKEA has been a family-owned business for 80 years, means that it is unlikely we’ll see an IKEA IPO date announced anytime soon.
How to invest in IKEA FAQs
Is IKEA on the stock market?
IKEA is not available on any stock exchange at this moment in time. The company is not a publicly traded entity.
Who owns IKEA now?
IKEA Group is owned by Stichting INGKA Foundation, which is still owned by the same family that founded IKEA in 1943. Like IKEA, INGKA Foundation is a private company that cannot be found on stock exchanges.
Can you invest in IKEA stock?
There is currently no way to gain exposure to IKEA, either through IKEA Group or through its parent company, Stichting INGKA Foundation. The only alternative for prospective investors is to gain exposure to the furniture manufacturing industry by purchasing shares in IKEA’s competitors.
The bottom line: IKEA is not a publicly traded company and there are no plans for an IPO date as things stand
IKEA has never been a publicly traded company, so there’s no way to gain investment exposure to the furniture brand directly. This also applies to all companies that fall under the INGKA Group umbrella, including Inter IKEA Systems which distributes the rights to IKEA franchise stores.
Since 100% of IKEA shares are owned by Stichting INGKA Foundation, the only hope for investors is that the Kamprad family decides to go public at some point in the future. While this is a possibility, it remains unlikely because of the company’s franchise system.
Here are some prominent IKEA competitors in the furniture manufacturing industry that can be found on stock exchanges:
You can learn more about how to invest in successful private companies by checking out our articles on:
Source: https://coincodex.com/article/32200/ikea-stock/