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J Crew preparing Madewell IPO: Reuters
Posted on Friday, 12 July 2019 14:36
US clothing chain Madewell could be about to go public after Reuters reported that the firm’s owner, J Crew, has hired investment banks to advise on the process.
According to three people familiar with the matter, Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley have been appointed by the company to prepare for an initial public offering (IPO).
The people, who did not wish to be identified as the situation is confidential, noted that a listing is expected to take place sometime after the US’s Labor Day public holiday on 2nd September.
However, no specific details of which stock exchange the firm is likely to float on or how much it could raise from the IPO have been disclosed at this time and none of the parties involved have commented on the report.
The sources said J Crew expects Madewell to be worth over USD 1.70 billion, its current debt level.
Reuters noted that the planned listing comes as J Crew looks to improve its finances as Amazon and more traditional bricks and mortar retailers provide increased levels of competition.
An IPO of Madewell was first reported back in April, when J Crew announced a review of strategic alternatives, including a potential flotation.
The company said that, should a listing go ahead, it could occur during the second half of 2019.
There have already been four deals targeting clothing and clothing accessories store operators announced worldwide since the beginning of 2019, according to Zephyr, the M&A database published by Bureau van Dijk.
Of these, the largest by value was by a US firm as the RealReal unveiled plans to float on Nasdaq, raising USD 100.00 million in the process, in May.
Other companies in the sector to have announced their intention to list since the start of January include Old Navy and Joyce Boutique Group, as well as some of Gap’s businesses.
© Zephus Ltd