Fashion in the conquest with new listings in the stock exchange
From Levi Strauss to Global Fashion Group, the sector has opened its capital in the stock exchange to find the speed it needs.
Fashion in the conquest. From historic companies such as Levi Strauss to one with a shorter trajectory like Global Fashion Group and even disruptive models like RealReal, the sector makes a move in the stock exchange to speed its growth. In the last couple of months new listings have appeared, and the market is going through a sweet moment.
Despite global economy showing signs of slowing down, even United States, the eurozone and China, the stock exchanges have evolved positively the first half of the year. The main stock index of United States is the Stardard&Poor’s 500, that reached at the end of June a historic record, after registering a rise of 17% in the first half of the year.
This scenario has favored new listings, specially in the fashion sector. Levi Strauss has been one of the biggest listings in the last couple of months. The American giant returned last March, after being absent for 24 years. The company rised its shares almost 32% in its debut, reaching 36.7 million shares, up to 623 million dollars during the first day.
Levi Strauss rised its shares almost 32% in its debut, up to 623 million dollars.
Global Fashion Group, owner of The Iconic, Zalora, Dafiti and Lamoda, listed after postponing the date and lowering the initial price of its stocks due to the lack of demand from the investors. Its shareholders, the Swedish fund Kinnevik and the German Rocket Internet, committed to participate in the acquisition of the group’s shares.
The listing of Global Fashion Group was led by the financial groups, Goldman Sachs, Morgan Stanley and Berengerg, and had as one of its missions to value the group’s capitalization in 1 billion dollars.
The luxury secondhand items marketplace, RealReal, listed in the New York stock exchange with a price of 1.5 billion dollars. The company positioned its price between 17 and 19 dollars per stock, arriving with 7.2 times more of what was planned, rising up to 207.4 million dollars. Finally, the company listed at 20 dollars per share, shooting its price up to 29 dollars during its first day.
The luxury secondhand items marketplace, RealReal, listed in the New York stock exchange with a price of 1.5 billion dollars
Alibaba, on the other hand, is also preparing its listing in the Hong Kong stock exchange, after the norm changed to allow Chinese companies listed in other countries to enter. For the moment the Chinese ecommerce giant has presented the necessary documents to begin its trading.
Alibaba, that is listed in the New York stock exchange since 2014, is looking to raise funds to invest in technology and earn better visibility amongst investors in the trade war between United States and China.
Hudson’s Bay also has this option on the table. The president of the company, Richard Baker, proposed its jump to the stock with a price of 9.45 Canadian dollars (7.5 US dollar) per stock. This would value the company in 1.7 billion Canadian dollars (1.3 million US dollars).
For the moment, the president of the company and the shareholders support the operation, and have named a committee to study the case. Its listing would be at the same time as another big operation, the possible sale of its business in Europe, where it operates through a jointed venture with Signa Holding.
Revolve debuted in the New York stock exchange with a valuation of 1.2 billion dollars
Revolve made its debut in the New York stock exchange the last couple of weeks, with a valuation of 1.2 billion dollars, after issuing 11.7 million stocks. The American company, with a revenue of 500 million dollars, and a net benefit of 30.6 million dollars is considered one of the biggest listings of this year.
Few weeks before its opening in the market, Revolve’s stocks marked 25 dollars, ten dollars up its starting point, and days later arrived at 36 dollars.
VF Corporation listed last May the split of its denim division (Wrangler, Lee and Rock&Republic) which it called Kontoor. The segregation happened after a stock transfer to the VF shareholders. Every seven stocks, the shareholders had the right of reducing a new ordinary stock of Kontoor.
The American group, owner also of Vans, The North Face and Timberland, inciciated this operation last summer, as a last step of its restructuration project. The new society will remain in the current location of Greensborough, while VF will move to Denver.
Dr Martens, on the other hand, is also in the final line of its listing. Its current owner, the venture capital fund Permira, announced last April its will to list the company and signed a pool of financial groups to supervise the operation. The stock exchange is also on the table for J.Crew for Madewell. The American fashion group has the option of creating a spin off with the chain and list it in the trading floor.
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