Key facts
- Reformation's shares opened flat on their NYSE debut.
- The womenswear retailer was valued at $886.1 million.
- The company raised $210.9 million in its initial public offering.
- Permira, the majority owner, will reduce its stake.
- Reformation reported annual revenue of $507.1 million and adjusted EBITDA of $45 million.
Permira-backed womenswear retailer Reformation debuted on the New York Stock Exchange on Thursday, with its shares opening flat and valuing the company at $886.1 million. The company, which had aimed for a valuation of up to $1 billion, raised $210.9 million in its initial public offering.
Reformation plans to use most of the IPO proceeds to repay a term loan. Investors are also cashing out approximately $73.3 million worth of shares. Permira, which acquired a controlling stake in Reformation in 2019, intends to reduce its ownership from 64.4 percent to 46.9 percent, assuming underwriters exercise their options. The family trust of founder Yael Aflalo will also see its stake decrease from 26 percent to 18.9 percent.
The company enters the public market with 1.1 million active customers. For the recent fiscal year, Reformation reported revenue of $507.1 million, a 15.7 percent increase, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $45 million. Reformation is part of a trend of fashion-related companies pursuing public offerings, with others like Tailored Brands Inc. filing for IPOs and Shein planning a listing in Hong Kong.