Fabletics, the workout-apparel brand backed by Kate Hudson, has tapped banks to help it prepare for an initial public offering that it hopes would value it at more than $5 billion, according to people familiar with the matter.
Fabletics, owned by TechStyle Fashion Group, recently selected
Goldman Sachs Group Inc.,
Plc and Bank of America Corp. for its IPO and is aiming to raise around $500 million in an offering, they said.
Fabletics was founded in 2013 by
who partnered with Ms. Hudson and feature her prominently in its advertisements. It aims to fill a gap in the market between high-end brands such as Lululemon and the cheapest brands.
Members pay a monthly fee that goes toward purchases of clothing, or can skip a month. Its products include color-coordinated workout tops and bottoms, sports bras and other accessories. The brand also gives members access to a workout app.
The IPO market has been on a tear and investors have been especially receptive to consumer-facing companies, including healthcare apparel startup
The scrubs-maker began trading in May and has a roughly $6 billion valuation, and its stock remains above its IPO price even after shares have tumbled. Trendy oatmilk company
AB debuted at a valuation of roughly $10 billion. Though its shares have fallen recently, its stock still sits more than 15% above its IPO price. Plus-size retailer
Torrid Holdings Inc.
made its stock-market debut earlier this month, with shares rising in their first day of trading. They remain above their IPO price.
Other consumer brands also exploring IPOs this year include trendy shoemaker Allbirds Inc. and eyeglass manufacturer Warby Parker Inc., according to people familiar with the matter.
Celebrity-backed and celebrity-founded companies are also having a moment. Ahead of its IPO, Oatly raised money in a
Blackstone Group Inc.
-led round that included Oprah Winfrey.
, the consumer-goods company co-founded by actress
went public this spring, but its stock has struggled since. Honest Co. shares were recently down more than 10% from their IPO price. On Wednesday, The Wall Street Journal reported over-the-counter medicine company Genexa Inc. raised $60 million of funding from venture-capital firms and celebrities including Gwyneth Paltrow and Don Cheadle.
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Appeared in the July 15, 2021, print edition as ‘Apparel Brand Fabletics Taps Banks to Help IPO.’