Skims - the company of American reality TV star Kim Kardashian - is expected to be listed soon, contributing to the revival of IPO activities in the US.
Goldman Sachs said on July 19 that investment banking revenue fell 20% in the second quarter. Last quarter, profits fell 58% from the same period last year, to $1.2 billion. "Many investment banking activities are at multi-decade lows. Our clients are risk-averse," Goldman Sachs CEO David Solomon said.
Data firm Dealogic also said global deal activity is at its lowest in more than a decade. For example, initial public offerings on the stock market have all but disappeared.
Experts say there are still plenty of good companies waiting to go public. They just don’t want to be the first. Once the impasse is cleared, IPOs will come in droves.
On CNN , Ro Sokhi – an expert at consulting firm UHY said that Cava – a Mediterranean restaurant chain – shares have increased more than 27% since its IPO. However, "Cava is not enough to open the flow".
Hope is now on Skims – a fashion brand co-founded by Kim Kardashian in 2019. She was born in 1980 in the US, known for the reality TV show Keeping Up With The Kardashians . Over the years, she has become famous in Hollywood with hundreds of millions of followers on social networks. Kim has also appeared in many films. According to Forbes, Kim currently has assets of 1.7 billion USD.
Kim Kardashian in a Skims store. Photo: Skims
In its most recent funding round, Skims raised $270 million, valuing the company at $4 billion. In total, Skims has raised $670 million in funding over the past four years.
Wellington Management, a firm known for taking companies public, led the latest investment in Skims. Skims also recently hired a chief financial officer, a common sign of an impending IPO.
Skims CEO Jens Grede told Dealbook that investors are interested in consumer companies like Skims, so an IPO is what the company wants. "In the future, Skims will become a public company," he said.
If Skims’ IPO is successful, “companies, CFOs and investors will see it as a very positive signal,” Sokhi said. “Investors will see that there is still opportunity out there,” he said. That’s exactly what 2021 will look like, a year of global dealmaking.
Still, Megan Penick, a lawyer at law firm Michelman & Robinson, says companies like Skims are unlikely to spark an IPO wave, especially for companies focused on science and technology that are not well-known. “Until investors are willing to open their wallets and become less cautious, we won’t see an IPO boom,” she says.
Ha Thu (according to CNN)
Source link
Comment (0)