IKEA Stock: Can You Buy IKEA Shares & Will They Go Public In 2024?

With over 460 stores worldwide and global sales topping €41 billion in 2021, IKEA is clearly one of the most successful furniture brands on the planet. But unlike many major public companies, IKEA stock is not available to everyday investors.

In this comprehensive guide, we‘ll explore everything you need to know about the possibility of buying IKEA shares or an upcoming IKEA IPO.

A Quick Snapshot of IKEA‘s Private Ownership

Let‘s start with a quick overview of who actually owns and controls this iconic brand:

Founded in 1943 by Ingvar Kamprad in Sweden.
Kamprad transferred ownership to the INGKA Foundation in 1982.
The foundation is controlled by the Kamprad family and owns 100% of IKEA shares.
IKEA‘s complex corporate structure is designed to preserve independence.
Estimated brand value of >$58.6 billion makes it extremely valuable.

This foundation ownership effectively makes IKEA stock unavailable on public markets, which we‘ll analyze in more detail below.

The Origins of IKEA‘s Unique Corporate Structure

Ingvar Kamprad, the founder of IKEA, established the current ownership framework back in 1982, forming the nonprofit INGKA Foundation in the Netherlands.

Per IKEA‘s website, Kamprad‘s goals were to:

Ensure IKEA‘s long-term independence
Protect the company from hostile takeovers after his death
Provide a lasting source of funding for charity

To fulfill these goals, Kamprad and his family transferred all shares of IKEA to the INGKA Foundation. This Dutch private foundation has operated as the sole shareholder of IKEA for over 40 years now.

The foundation is controlled by a five-person executive committee chaired by Kamprad‘s son Mathias Kamprad. While nonprofit in structure, the foundation‘s strategic role is to preserve IKEA‘s independence and culture.

The Implications of IKEA‘s Private Ownership

IKEA operating outside the pressures of public markets has notable advantages and disadvantages:

Advantages

Insulated from hostile takeovers
More stability and long-term focus
Not pressured by short-term profit demands
Retains unique company culture

Disadvantages

Limits options to raise capital
Lacks public stock as acquisition currency
Reduces corporate transparency
Hampers brand exposure and publicity

IKEA seems to prefer the advantages despite the drawbacks. But eventually, realities of capital needs or family dynamics could lead to changes.

Analyzing the Possibility of an IKEA IPO

Given the brand‘s stature and valuation, the possibility of an IKEA IPO inevitably raises major questions:

Why IKEA stays private

Kamprad‘s vision of independence
Foundation‘s control avoids risks
Wealthy enough to self-fund growth
Culture not geared toward shareholders

Why IKEA could go public

Raise capital for rapid expansion
Liquidity for founders/foundation
Competitive pressures increase
Need to fund major acquisitions
Family dynamics create need

As the table below indicates, IKEA does face growing competition from both online retailers and other home goods brands with public stock. An IPO could position IKEA to grow faster in this increasingly competitive landscape.

But IKEA has thus far preferred to self-fund expansion, taking on debt over offering equity. Unless capital needs change significantly, the company will likely remain committed to its private status for the foreseeable future.

How Investors Can Gain Exposure to IKEA

Since directly investing in IKEA stock isn‘t possible, here are a few alternative ways investors could gain exposure:

Invest in public competitors – Buy stock in Wayfair, Williams-Sonoma, Amazon, and other competing chains.
IKEA corporate bonds – IKEA does offer corporate bonds to investors as debt financing options.
IKEA suppliers or partners – Consider investing in key companies that supply and partner with IKEA like manufacturers and shippers.
Retail sector ETFs – Funds focused on furniture and home goods retailers offer indirect exposure.

These options provide a way to participate in IKEA‘s success without direct equity ownership.

The Bottom Line on IKEA Stock

While IKEA is one of the world‘s most valuable brands in retail, IKEA stock remains off limits to everyday investors and enthusiasts. The private ownership structure implemented by founder Ingvar Kamprad has kept the company closely held by the nonprofit INGKA Foundation.

This unusual framework provides independence and continuity for IKEA, but prevents public investment. Barring major changes in strategy or capital needs, IKEA seems certain to keep avoiding an IPO and remain a private entity for the foreseeable future.

But the company‘s scale, brand strength, and continued expansion still make it an intriguing target for investors. Through alternatives like bonds, competitors, suppliers, and sector ETFs, determined investors can gain portfolio exposure to IKEA despite its private status.