a.k.a. Brands expects to raise up to 263.9 million dollars in New York IPO

Direct-to-consumer fashion platform a.k.a. Brands says it expects to raise 263.9 million dollars in its upcoming IPO.

The company, which owns brands Princess Polly, Petal & Pup, Rebdolls, and Culture Kings, announced Monday it is offering 13.89 million shares of its common stock at a price of between 17 dollars and 19 dollars.

It comes after the company last month announced plans to float on the New York Stock Exchange under the ticker ‘AKA’.

The company announced Tuesday it has publicly filed a registration statement on Form S-1 with the US Securities and Exchange Commission relating to the float.

Soaring sales

The plans to go public come amid surging sales and profit at a.k.a. Brands, which acts as a global platform of direct-to-consumer, digitally native fashion brands.

In the year to December 2020, the company’s net sales increased 110.8 percent to 215.92 million dollars, while net income increased more than tenfold to 14.81 million dollars. Its gross margin increased by 401 basis points during the year.

Meanwhile, net sales in the six months to June 30 2021 increased 166.5 percent to 218 million dollars, while net income increased 79.7 percent to 3.98 billion dollars. Its gross margin increase by 72 basis points compared to a year ago.

The news of a.k.a. Brands’s IPO adds to a growing list of fashion companies to have announced plans to float since the beginning of the pandemic, including the likes of Allbirds, Authentic Brands Group, On, Poshmark, ThredUp, Warby Parker, Dr Martens and The Hut Group.

BofA Securities, Credit Suisse and Jefferies are acting as joint lead book-running managers for a.k.a. Brands' proposed offering, while Wells Fargo Securities, KeyBanc Capital Markets, Cowen, Piper Sandler and Truist Securities are also acting as book-running managers.

Telsey Advisory Group and Loop Capital Markets are acting as co-managers for the proposed offering.