A.k.a brands, the owner of Culture Kings, Princess Polly, Petal & Pup and Rebdolls, last week announced its long-awaited IPO, initially planning to offer almost 14 million shares of common stock on the New York Stock Exchange.
This would raise around US$260 million with shares selling at US$17 to US$19 each, but the business yesterday revised its offer to sell around 10 million shares at US$11 to US$13 each – signaling a massive 52 per cent drop in its expected worth, according to Renaissance Capital.
Under the new range, the IPO could bring in closer to US$105 or US$122 million. The preliminary prospectus doesn’t state when the IPO will begin, but its expected to be sometime this week.
The group plans to use net proceeds from the offer, together with borrowings under a new secured credit facility, to repay outstanding amounts on existing credit facilities. Any remaining proceeds will be put toward “general purposes”, which could include future acquisitions.
A.k.a brands was founded in 2018, and has largely focused on picking up fashion brands that appeal to a younger audience and who shop through social media. According to Barron’s, the business picked up Princess Polly that year, Petal & Pup and Rebdolls in 2019, and streetwear brand Culture Kings in 2021.