Childrenswear subscription box service Kidpik goes public
Kidpik Corp., the New York-based company which offers subscription boxes with apparel, footwear and accessories for kids, launched its initial public offering on Thursday, joining a rush of fashion-focused businesses that have gone public this year.
Trading on the Nasdaq under the ticker symbol “PIK,” Kidpik issued 2,117,647 shares of common stock priced at $8.50 each. This should make for aggregate gross proceeds of approximately $18.0 million, prior to deducting underwriting discounts, commissions, and offering expenses. The company has also given its underwriters a 45-day option to purchase up to an additional 317,647 shares.
Bearing in mind Kidpik’s pre-existing 5,500,187 common shares, the IPO values the company at around $65 million and is expected to close on Monday, November 15, subject to customary closing conditions.
Founded in 2016 by kidswear industry vet Ezrah Dabah, Kid Pik allows customers to sign up to receive curated boxes every four, six or 12 weeks. Boxes contain seven items – five pieces of clothing, an accessory and a pair of shoes. The company has distributed more than 1 million subscription boxes since its launch five years ago.
Currently, subscription box businesses are experiencing a wave of popularity due to a spike in interest during Covid-19-related lockdowns.
According to Kidpik’s IPO prospectus, it achieved annual net revenue of $16.94 million in 2020, an increase of 25.3% year over year. Net loss was $4.19 million, compared to a loss of $4.6 million in 2019.
With its IPO, Kidpik joins the likes of Rent the Runway, Allbird and Warby Parker, all of whom have taken the plunge and gone public over the last months.
Copyright © 2023 FashionNetwork.com All rights reserved.