Direct-to-consumer fashion platform a.k.a Brands has slashed the size of its upcoming IPO.
The youth-focused company, which last month revealed plans to float on the New York Stock Exchange under the ticker ‘AKA’, said Tuesday it plans to raise around 110 million dollars by selling 10 million shares of its common stock at a price of 11 dollars per share.
That’s down from the goal announced earlier this month of raising up to 263.9 million dollars through the offering of 13.89 million shares at a price of between 17 dollars and 19 dollars.
The IPO is expected to close on September 24.
Established in 2018, a.k.a Brands is a global platform of direct-to-consumer, digitally native fashion brands.
Its portfolio includes Princess Polly, Petal & Pup, Rebdolls, and its most recent addition, Australian streetwear retailer Culture Kings, which it acquired back in April for an undisclosed sum.
In the year to December 2020, net sales at a.k.a Brands increased 110.8 percent to 215.92 million dollars, while net income increased more than tenfold to 14.81 million dollars. Its gross margin increased by 401 basis points during the year.
For the six months to June 30 2021, net sales increased 166.5 percent to 218 million dollars, while net income increased 79.7 percent to 3.98 billion dollars. Its gross margin increase by 72 basis points compared to a year ago.