- Smart-speaker maker Sonos filed regulatory documents for an initial public offering on Friday, and warned potential investors that US tariffs on China could harm its business.
- US tariffs on $US34 billion worth of Chinese goods kicked in earlier on Friday.
Companies seeking to go public may now have one extra risk to alert potential investors about: a trade war.
The smart-speaker company Sonos filed regulatory paperwork for its initial public offering on Friday, and listed trade disputes between the US and China as a potential drawback on its business. The filing’s release coincided with the first day of US tariffs taking effect on $US34 billion worth of Chinese imports. A second wave of tariffs is expected in a few weeks.
“If significant tariffs or other restrictions are placed on Chinese imports or any related counter-measures are taken by China, our revenue and results of operations may be materially harmed,” Sonos said.
The company noted that President Donald Trump has imposed a 25% tariff on steel imports and a 10% tax on aluminium.
“The materials subject to these tariffs to date do not impact our raw material costs,” the filing said.
“However, if further tariffs are imposed on a broader range of imports, or if further retaliatory trade measures are taken by China or other countries in response to additional tariffs, we may be required to raise our prices, which may result in the loss of customers and harm our reputation and operating performance.”
In IPO filing documents, companies are required to list potential “risk factors” to their businesses, ranging from war and natural disasters to fierce competition.
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