An obvious play on the return of social gatherings as the coronavirus pandemic recedes, subscription fashion service RENT THE RUNWAY has slotted October 27 for its Nasdaq debut. Goldman Sachs, Morgan Stanley and Barclays expect to price the US$315m all-primary offering of 15m shares at US$18-US$21 the night before. Mutual fund Franklin Templeton has committed to invest US$75m upfront, or nearly one-quarter of the offering. The IPO represents a little more than a 20% stake in the business, an extremely large chunk by typical US IPO standards. Rent the Runway, whose backers include Bain Capital, Highland Capital Partners and Ares Management, plans to use the proceeds to repay roughly US$305m of debt. The IPO would leave Rent the Runway in a broadly net-cash neutral position, with US$276.8m of long-term debt versus US$257.2m of cash.
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