Permira-backed fashion brand Reformation is seeking a valuation of up to $1bn through a US initial public offering, offering the private equity firm a potential partial exit and a public-market test of its investment in the sustainable womenswear retailer, according to a report by Reuters.
The Los Angeles-based company said it plans to offer 14.1 million shares at between $15 and $17 each, potentially raising as much as $239.1m for the company and selling shareholders.
Reformation is targeting a listing on the New York Stock Exchange under the ticker REF. JP Morgan, Morgan Stanley, Citigroup and RBC Capital Markets are acting as lead underwriters.
The IPO would represent a relatively rare public-market listing for a fashion brand at a time when US equity issuance has been dominated by companies linked to artificial intelligence infrastructure, defence and other high-growth sectors.
For Permira, which acquired a majority stake in Reformation in 2019, the offering provides an opportunity to crystallise value from one of its consumer investments while retaining significant influence over the business after the listing.
Founded in 2009 as a vintage clothing store in Los Angeles, Reformation has developed into a direct-to-consumer fashion brand selling women’s clothing and accessories with sustainability at the centre of its positioning.
Approximately 90% of the company’s sales are generated through direct-to-consumer channels. The model gives Reformation greater control over pricing, merchandising, customer relationships and inventory than brands that rely more heavily on wholesale distribution.
However, the IPO will test whether that model and the company’s sustainability credentials are sufficient to attract public-market investors amid a more selective environment for consumer companies.
