Shares of Mytheresa.com are set to begin public trading on Thursday.
For the luxury e-tailer’s initial public offering, its owner and an existing shareholder, private-equity firm Ares Management, priced shares Wednesday night, raising $407 million for a valuation of $2.2 billion.
Mytheresa’s IPO follows the public debut of Poshmark, the peer-to-peer fashion resale platform that completed its IPO on Thursday with initial share prices of $42 reaching $97 when trading began, roughly valuing the company at $3 billion. The interest and appetite from investors for new offerings, particularly in fashion, should bode well for British footwear brand Dr. Martens’ arrival on the London Stock Exchange early this year.
The Netherlands-based Mytheresa was once part of Neiman Marcus, but was spun off to a bankrupt-proof holding company. That spinoff became the topic of a heated battle between the luxury retailer and its creditors during the department store’s bankruptcy last year. Neiman ultimately exited Chapter 11 proceedings in September, but only after agreeing to give creditor groups a stake in Mytheresa through shares of preferred and common stock. The owners are selling about 2 million of their shares at $26 a pop, worth approximately $52 million.
One year before its bankruptcy, Neiman had hired Lazard to find a Mytheresa buyer. Sources have said that incoming bids were far lower than the minimum floor valuation of $500 million, so Neiman kept the Mytheresa platform.
The e-commerce platform sells more than 250 luxury brands across apparel and accessories for men, women and children. The company posted around $7.7 million in net income on sales in the range of $547.4 million last year, according to a regulatory filing.