FIGS, The Health Apparel Company at $4.57 BL Valuation After IPO.

FIGS Inc. is an apparel and lifestyle company for healthcare workers that launched in 2013. Eight years after Heather Hasson and Trina Spear founded the company, went public. It started by selling products out of their cars.

IPO and Market Entry of FIGS.

The company priced its initial public offering at $22 a share Wednesday night, well above its expected range of $16 to $19 a share. Figs also expanded its stock offering, increasing the number of shares sold from 22.5 million to 26.4 million, raising nearly $581 million. About 1% of those shares were reserved for retail investors on Robinhood.

Shares began trading Thursday on the New York Stock Exchange under the ticker “FIGS,” soaring nearly 36% out of the gate. The first trade was at $28.30 at 16:43 (WAT) for 2.4 million shares, which valued the company at $4.57 billion. Goldman Sachs and Morgan Stanley led the 15 banks underwriting the deal.

Net revenue for the company grew to $263.1 million in 2020 from $110.5 million in 2019. The company grew from $17.6 million in 2017, a compound annual growth rate (CAGR) of 146%. The 2020 active customer tally was 1.3 million, up from 600,000 in 2019.

After the initial public offering, Figs will own Class A shares with one vote per share, and Class B shares with 20 votes per share, which will be converted into Class A ordinary shares. All issued Class B shares are held by the company’s co-founders and the majority shareholder of Tulco, LLC.

After the IPO, these holders will represent 79.3% of the voting shares in the issued shares. Figs has no plan to pay dividends. The company will use all the proceeds of the IPO for commercial purposes. Figs says that 98% of its sales come from digital platforms. 82% of Fig’s net sales come from 13 major cleaning clothing styles. The rest comes from limited edition and non-cleaning products, including lab coats, compression socks, masks, etc. It is entering Canada, Australia and the United Kingdom in 2020.

FIGS Innovation and Expansion.

Fig provides services to people in the healthcare industry. Fig says it takes a similar approach to athletes and sports equipment. This is by focusing on innovation and technology to achieve maximum comfort and performance. 

The company has developed its own FIONx fabric production technology and provides products with features such as odor protection and moisture transport. 

It is also exploring other occupations that require uniforms. The company estimates there are 40 million people working in areas outside of healthcare, like food service, hospitality, construction and transportation, who could use more technical equipment to make their work easier.