Mytheresa IPO Pops As Trading Begins For Luxury E-Commerce Retailer

The fast-growing e-commerce business was the subject of a costly fight between Neiman, its private equity owners and its creditors that started with the 2018 spinoff and continued into the company’s bankruptcy last year.

The initial public offering far exceeded the $1 billion value expected by Marble Ridge Capital LP and its founder Dan Kamensky, the most vocal among Neiman’s creditors to challenge its private equity owners when they took control of Mytheresa.

Mytheresa stock climbed 19.2%, closing at 31 on the stock market today. The Mytheresa IPO pricing gave the company a market value of about $2.2 billion.

With Neiman struggling in 2019 with coming debt maturities, its private equity owners agreed to split up ownership of Mytheresa in a broad settlement with its creditors. But Mr. Kamensky and some others held out for more. Later in bankruptcy court, they argued it was worth more than Neiman’s owners, Ares Management Corp. and the Canadian Pension Plan Investment Board, were letting on.

Launched in 2006, Mytheresa provides an e-commerce platform that offers high-end luxury goods with brand-name designer clothing. It also sells shoes, bags and accessories for women, men and kids. Brands include Prada, Burberry, Gucci, Fendi, Valentino and Saint Laurent.

In addition, the company reported net income of $7.7 million on sales of $547.5 million for 2020.

“Our customers are high income luxury consumers that value quality and experience over price and curation over assortment breadth,” Chief Executive Michael Kliger wrote in the Mytheresa IPO filing. “We offer these leading luxury brands visibility to a highly valuable audience, aggregated customer and trend insights across multiple brands and categories and most importantly, control over brand image and pricing integrity.”

IPO oversubscribed

IPO research and advisory firm IPO Boutique said the Mytheresa IPO was “many multiple-times oversubscribed.” That suggests the request for shares is much higher than what was made available.

The Mytheresa IPO listed on the New York Stock Exchange under the ticker MYTE. Also, the lead underwriters include Morgan Stanley, JPMorgan, Credit Suisse and UBS Investment Bank. Parent company MYT Netherlands is based in Munich, Germany.

Recent IPO stocks are where you often find some of the market’s best stocks. New IPOs are typically in their early stages of growth, and it’s big earnings growth that generally fuels a stock’s price performance.

Read more: Business Daily