Kate Hudson-backed clothing brand Fabletics taps banks for IPO
Fabletics, the Kate Hudson-backed workout clothing brand, has appealed to banks to help it prepare for an initial public offering which it hopes would value it at over $ 5 billion. dollars, according to people familiar with the matter.
Fabletics, owned by TechStyle Fashion Group, recently selected Morgan Stanley,
Goldman Sachs Group Inc., Barclays BCS 0.94%
Plc and Bank of America Corp. for its IPO and aims to raise around $ 500 million in an offer, they said.
Fabletics was founded in 2013 by Adam Goldenberg and Don Ressler, who partnered with Ms. Hudson and made her stand out in her advertisements. It aims to fill a gap in the market between high-end brands such as Lululemon and the cheaper brands.
Members pay a monthly fee which is used to purchase clothes, or can skip a month. Its products include color-coordinated workout tops and bottoms, sports bras and other accessories. The brand also gives members access to a training app.
The IPO market has been in turmoil, and investors have been particularly receptive to consumer-oriented companies, including healthwear startup Figs. Inc.
The scrubs maker started trading in May and has a valuation of around $ 6 billion, and its stock remains above its IPO price even after the stock plummets. Trendy oat milk company Oatly Group AB debuted with a valuation of around $ 10 billion. Although its shares have fallen recently, its stock is still more than 15% above its IPO price. Large Retailer Torrid Holdings Inc.
debuted on the stock market earlier this month, with shares rising on their first day of listing. They remain above their IPO price.
Other mainstream brands are also exploring IPOs this year, including fashionable shoemaker Allbirds Inc. and eyewear maker Warby Parker Inc., according to people familiar with the matter.
Celebrity backed and founded businesses are also having a moment. Before its IPO, Oatly raised funds in a Blackstone group Inc.
– led round which included Oprah Winfrey. Honest Co.
, the consumer goods company co-founded by actress Jessica Alba, went public this spring, but its actions have struggled since. Honest Co. shares have recently fallen more than 10% from their IPO price. The Wall Street Journal reported on Wednesday that over-the-counter drug company Genexa Inc. had raised $ 60 million in funds from venture capital and celebrity firms, including Gwyneth Paltrow and Don Cheadle.
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