(Reuters) -FIGS Inc is aiming for a valuation of more than $3 billion in its U.S. initial public offering (IPO), as the maker of medical scrubs, face masks and shields sees a jump in demand for its products during the COVID-19 pandemic.
About 1% of the 22.5 million Class A shares on offer will be reserved for retail investors through online brokerage app Robinhood, FIGS said, making it the first IPO to be included on the trading platform.
Robinhood’s plan to allow its users to snap up shares in IPOs alongside Wall Street funds was reported by Reuters in March.
FIGS said it is offering about 5.9 million Class A shares priced between $16 and $19 each, while existing investors will sell about 16.6 million shares. At the top end of the range, it will raise about $427.5 million.
Founded in 2013 by Heather Hasson and Trina Spear, FIGS makes medical apparel aimed at combining style with comfort, sold under the tagline, “why wear scrubs, when you can wear FIGS?”
The idea for the company came to Hasson when she was grabbing coffee with a friend and nurse practitioner, who spent 16-hour days wearing “boxy, scratchy, uncomfortable scrubs”.
FIGS sells scrubs in different styles including “skinny scrub” pants and “oversized” scrub tops and those with multiple pockets.
With the onset of the COVID-19 outbreak last year, the company ramped up production to meet the needs of frontline workers. It reported a 138% jump in 2020 revenue and a profit of $57.9 million, compared with a loss a year earlier.
The Los Angeles-based firm backed by billionaire businessman Thomas Tull, will list its stock on the New York Stock Exchange under the symbol “FIGS”.
Goldman Sachs & Co, Credit Suisse, Morgan Stanley, Barclays and BofA Securities are among underwriters for the offering.
Reporting by Noor Zainab Hussain and Niket Nishant in Bengaluru; Editing by Ramakrishnan M.
