The shares for a $278 million fashion retailer commence trading on the ASX this week.
Universal Store Holdings Limited (ASX: UNI) has raised $147.8 million through its initial public offering (IPO) and its shares will be available midday Monday AEST on a conditional basis.
Any transactions on Monday and Tuesday are expected to be settled on Wednesday morning before the ASX opens. Shares will then be open to normal trading from the start of market on Wednesday.
The IPO price per share was $3.80, which equates to a market capitalisation of $278.1 million.
The ASX listing is the brainchild of billionaire, Brett Blundy, who has previously listed retailers Adairs Ltd (ASX: ADH) and Lovisa Holdings Ltd (ASX: LOV), as well as commercial property company Aventus Group (ASX: AVN).
Blundy’s company acquired Universal two years ago for $110 million from its founders.
The youth fashion seller then went against the rest of the industry by posting strong revenue growth in recent years. The last seven weeks has seen a 33% increase in Universal’s year-on-year sales.
“Today is a milestone in the growth of Universal Store,” said Universal Store chief executive, Alice Barbery.
“Our culture and care for our customers is at the heart of all that we do and is critical to our continued success.”
Physical stores roaring back
Universal has 65 stores nationally, but had 12 Melbourne outlets closed during that city’s second lockdown.
Those stores have now been reopened for two weeks, posting sales growth of 23% year-on-year during that period.
“We are delighted to have all our Victorian stores open and trading again in the lead up to school holidays and the Christmas season,” Barbery said.
“We are also encouraged by the prospects for our stores and online sales in Melbourne as restrictions are further eased over coming weeks.”
Although Universal has an online store, the majority of its revenue comes from physical outlets. This could point to an upside in the next 18 months as solutions potentially come along for COVID-19.
The ASX has welcomed two other high-profile retailers to its boards over the last month.
Adore Beauty Group Ltd (ASX: ABY) came in with a market cap of $635 million but is currently down on its IPO share price of $6.75, sitting at $6.
Mydeal.ComAu Pty Ltd (ASX: MYD) has fared much better, pushing its IPO share price of $1 up to $1.25.
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Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and AVENTUS RE UNIT. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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