Funko mascots Freddy Funko roll past on a conveyor belt in the Pop! Factory of the company’s new flagship store in downtown Everett. (File photo)

Funko mascots Freddy Funko roll past on a conveyor belt in the Pop! Factory of the company’s new flagship store in downtown Everett. (File photo)

Everett toy-maker Funko plans a public stock offering

The popular collectibles brand filed paperwork Friday with the federal government.

EVERETT — Toy and collectible maker Funko, which just opened a headquarters and flagship store in downtown Everett, filed paperwork Friday to take the company public.

The initial public offering seeks to raise $100 million, though that figure likely could change in subsequent filings with the U.S. Securities and Exchange Commission.

In the filing, the company said it would use some of the proceeds of the stock offering to pay down some debt and for general purposes. Funko posted net income of $26.9 million on net sales of $426.7 million in 2016.

Acon Investments acquired a majority stake in Funko from Fundamental Capital in 2015 and has grown the company through acquisitions.

Funko plans to list shares on the Nasdaq Global Select Market under the symbol FNKO.

The company located at 2802 Wetmore Ave. makes vinyl figurines of pop culture characters such as Superman, Batman and Spider-Man and also makes apparel, home decor and stuff animals. Its products line the walls of big-box stores and comic book shops.

The filing offers a unique view into the company allowing investors to the strengths and weaknesses of the business. The company has 465 full-time employees with 339 in the U.S. and 126 in the United Kingdom. Funko touts that it’s a “leading pop culture consumer products company.”

“Our business is built on the principle that almost everyone is a fan of something and the evolution of pop culture is leading to increasing opportunities for fan loyalty,” according to the filing. “We create whimsical, fun and unique products that enable fans to express their affinity for their favorite ‘something’—whether it is a movie, TV show, video game, musician or sports team.”

The company says in the filing that it’s nimble and a low-fixed cost production model. Funko can create a figurine and put it on shelves in as few as 70 days although typically products arrive between 110 and 200 days. Cost is as little as $5,000 to $7,500 for tooling, modeling and design.

Risks in the future include the concern that the industry is competitive and barriers to entry are low and the company’s debt could affect its financial health and competitive position.

Funko had $588 million in assets as of the end of June, but the company owed $339 million in debt, according to the filing.

Jim Davis: 425-339-3097, jdavis@heraldnet.com, Twitter: @HBJnews

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