German luxury fashion eTailer Mytheresa raised $406.8 million in its U.S. initial public offering (IPO), increasing its valuation to $2.2 billion.
The company’s successful IPO comes on the heels of a strong sales performance last year. It reported net sales of more than $154 million in the quarter ending September 30 and a net income of $11.7 million, which was a significant improvement from the $5.2 million the company reported in losses the year before.
“Luxury has been significantly less digital than other industries. Today, the share of luxury fashion bought online is around 12 percent. That is likely to rise to 30 percent,” Mytheresa’s Chief Executive Michael Kliger told Reuters in an interview on Thursday.
The company’s 15.6 million American depositary shares (ADS) were priced at $26 per unit, up from its previously planned range of $16 to $18 per unit. The company is selling nearly 13.6 million ADS, whereas its shareholders will sell 2 million units.
According to Klinger, some of the IPO proceeds will be used to repay debt related to its former parent company Neiman Marcus’s bankruptcy. The rest of it, however, will reportedly be used to boost the company’s international growth.
Looking ahead, Kliger expects the sales to rise by 22 to 25 percent annually after a 30 percent jump in the second half of 2020, according to Reuters.
Mytheresa is backed by Ares Management Corp. and Canada Pension Plan Investment Board. The company was acquired by Neiman Marcus in 2014 but was sold in July this year as the U.S. luxury fashion retailer sought to emerge from Chapter 11 bankruptcy.