“REF” is getting ready.
Reformation, which is prepping its initial public offering under that ticker symbol, is looking to land on the New York Stock Exchange with a valuation of up to $1 billion.
The company, which filed for its IPO late last month, said on Monday that it expected to price its shares at $15 to $17 each. If the sustainably minded brand hits the lower end of that range, it will be valued at $886.1 million.
At the midpoint, Reformation itself would raise $151.7 million, or $134.5 million after expenses, and plans to spend most of that to repay a term loan.
Investors are also cashing out some $73.3 million worth of their shares, at the midpoint of the pricing range.
Permira, which took control of the company in 2019, plans to cut its stake to 46.9 percent from 64.4 percent, while founder Yael Aflalo’s family trust will bring its stake down to 18.9 percent from 26 percent, assuming underwriters exercise their option to buy shares.
Reformation is part of what’s seen as a wave of fashion-related companies looking to try their luck on the open markets.
This month, menswear specialty retail leader Tailored Brands Inc. filed to go public on the Nasdaq, while ultra-fast-fashion player Shein plans on listing in Hong Kong after coming up short in New York and London due to regulators’ reluctance.
Brand management giant Authentic Brands Group has also said it would pursue an offering while others are seen in the wings, including Kim Kardashian’s Skims, Vuori and Alo.
Reformation, which is led by Hali Borenstein, chief executive officer, is coming into the market with 1.1 million active customers, annual revenue up 15.7 percent to $507.1 million and adjusted earnings before interest, taxes, depreciation and amortization of $45 million.
The company has a strong message on sustainability, but will need to keep growth up to stand out on Wall Street.
If the company hits the market at that $1 billion valuation, it would rank ahead of Canada Goose Holdings, which has a market capitalization of about $952 million, but behind Mytheresa and Net-a-porter owner LuxExperience at about $1.1 billion and The RealReal Inc. at roughly $1.4 billion.
