A.K.A. Brands stock disappoints in Wall Street debut
A.K.A. Brands Holding Corp., a San Francisco-based company specialized in digital-native fashion brands targeting millennial and Gen-Z consumers, made its initial public offering on Wednesday, opening below the initial public offering price.
After cutting its IPO’s size and expected price range on Tuesday just ahead of its expected offering, it raised some $110 million by selling 10 million shares at $11 each, at the low end of the recently lower expected range. That was down from the 13.9 million it had originally planned to sell, according to a revised S-1 filing with the U.S. Securities and Exchange Commission.
Shares of A.K.A. fell 4.2 percent to $10.54 once they started trading. That leaves A.K.A. with a market capitalization of $1.3 billion.
The company, which owns the Princess Polly, Culture Kings, Petal & Pup and Rebdolls brands, was founded in 2018 and has since been working to acquire digital fashion brands with strong growth potential, a solid track record and the capacity to expand into new markets.
A.K.A. first announced plans to launch an IPO in August, following net income of $14.8 million on revenue of $215.9 million in 2020. The company joins the likes of Warby Parker, Poshmark, ThredUp,and more who have all filed for an IPO since the start of the year.
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