Dyson IPO: Can Investors Expect Dyson Stock?
A Dyson IPO is the newest investment opportunity on investors’ minds. After hearing about the company’s newest project, investors want Dyson stock.
But the company is private.
While there may not be a Dyson IPO in the near future, the company has a chance to shine during the coronavirus pandemic. If Dyson can deliver on its promises, the demand for Dyson stock will grow. Here’s what we know…
Dyson IPO: The Business
Dyson is a British technology company. Sir James Dyson founded it in 1991. Dyson designs and builds household appliances such as vacuums, hair dryers and air purifiers. It was the first company to develop a bagless vacuum, leading to the cordless vacuum. Dyson has increased the quality of living in millions of homes.
Sir Dyson has said:
“Like everyone, we get frustrated by products that don’t work properly. As design engineers, we do something about it. We’re all about invention and improvement.”
And Dyson is inventing more than household items. The reason investors are looking for a Dyson IPO is because of its newest project.
If you aren’t familiar with how companies go public, here’s our step-by-step guide: The IPO Process.
Dyson Designs Ventilators for COVID-19 Patients
Sir Dyson sent out a letter to his employees. It confirmed that the company is using its technology to build ventilators.
During this pandemic, ventilators are vital. Yet, there isn’t enough global supply.
U.K. Prime Minister Boris Johnson, who has a confirmed case of coronavirus, reached out to the company. It then took 10 days to design the ventilator. Sir Dyson addressed it in his letter.
Since I received a call from Boris Johnson ten days ago, we have refocused resources at Dyson, and worked with TTP, The Technology Partnership, to design and build an entirely new ventilator, The CoVent. This new device can be manufactured quickly, efficiently and at volume. It is designed to address the specific clinical needs of Covid-19 patients, and it is suited to a variety of clinical settings. The core challenge was how to design and deliver a new, sophisticated medical product in volume and in an extremely short space of time. The race is now on to get it into production.
The CoVent is a bed-mounted, portable ventilator. It can also be used in field hospitals, running on batter power.
Dyson is working under a grant from the U.K. government. The company agreed to build 10,000 ventilators for its country. It will produce an additional 5,000 for donation—1,000 to the U.K. and 4,000 to other countries.
Are Dyson’s Ventilators Safe?
Before Dyson can start mass producing the CoVent, it needs regulatory approval. Despite the need for these devices, the government wants to ensure they’re safe and work properly.
But Dyson isn’t worried about that. The company is confident in its product and technology. According to Sir Dyson’s letter:
The Dyson Digital motor sits at the heart of the new device and the motor’s design is optimized to have a very high level of intrinsic safety, making it particularly well-suited for industrial, high volume production. The device is designed to achieve a high-quality air supply to ensure its safety and effectiveness, drawing on our air purifier expertise which delivers high-quality filtration in high-volume products.
With this mix of confidence, experience and technology, investors are biting at the bit. Dyson is already a successful company. Now, with its action to help, its reputation is growing.
But if there is a Dyson IPO, investor should look at all parts of the business. Dyson has some failed projects.
Dyson Electric Vehicle Project Canceled
Back in 2016, Dyson started looking at entering the electric vehicle (EV) market. A spokeswoman, Olya Leptoukh, said Dyson wanted to help the environment. The company believed entering the auto industry was a logical choice.
The automotive industry will no doubt bring its set of challenges, but we are comfortable with the challenge. And we are working with the same core competencies we’ve been working on for years—primarily motors and batteries.
But it seems Dyson couldn’t overcome the challenges. In October 2019, Sir Dyson announced the company would be cancelling its EV project.
However, though we have tried very hard throughout the development process, we simply can no longer see a way to make it commercially viable.
Sir Dyson claimed his engineers had built a “fantastic car.” He said the project wasn’t closing due to failures in research and development. And although Dyson is closing its automotive division, it will continue to develop batteries and other technologies. That could include vision systems, robotics, machine learning and AI.
Dyson’s original plan was to start building EVs in 2020. And while that won’t be happening, it’s possible investors will see other ambitious projects soon.
But the real question about a Dyson IPO is…
Will Dyson IPO?
The company hasn’t announced plans to go public. Investors are more interested in companies getting involved in the coronavirus pandemic than ever before. And if Dyson’s CoVent is successful, the company might continue to build the product.
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While Dyson may not have plan to go public soon, investors should keep an eye out. Hopefully with Dyson’s success during the coronavirus pandemic, the company will see the investor demand and give us the desired Dyson IPO.
About Amber Deter
Amber Deter has researched and written about initial public offerings (IPOs) over the last few years. After starting her college career studying accounting and business, Amber decided to focus on her love of writing. Now she’s able to bring that experience to Investment U readers by providing in-depth research on IPO and investing opportunities.