The fashionable and comfortable medical apparel company went public last week, reaching a market valuation of circa 6 billion dollars. FIGS is taking the stock market by storm, not only due to its successful debut on the trading floor, but also for being the first company issuing an initial public offering of shares (IPO) whose founders are all women and for becoming the first IPO accessible to users of the Robinhood trading platform.
FIGS Inc. (FIGS) stock’s first trade was at 28.30 dollars for 2.4 million shares, which valued the company at 4.57 billion dollars. A total of 26.39 shares were offered in the IPO, with 4.64 million shares offered by the company as it raised 1.02 billion dollars, and with 21.75 million shares offered by its largest shareholder Tulco LLC to raise 478.5 million dollars.
Last Thursday, shares of FIGS jumped 36 percent to close at 30.02 dollars after they priced at 22 dollars each. At the close of its first trading session, FIGS’ valuation was about 6 billion dollars. It’s worth recalling that the IPO price for FIGS was higher than the expected range of 16 dollars to 19 dollars and that they sold more shares than what they initially planned for.
FIGS, a profitable startup created by two women, that goes public
On Thursday morning, Heather Hasson and Trina Spear rang the opening bell as their company, FIGS, began trading on the New York Stock Exchange. The milestone was notable for many reasons, amongst others that this was the first IPO led by two female co-founders.
“It’s incredibly rare,” says Pam Kostka, the CEO of All Raise, in declarations published by ‘Fortune’. “There might have been other companies that started with two female cofounders, but those that have made it through the growth gauntlet and scale gauntlet to exit together—they’re the only ones to my knowledge.”
FIGS reported net income of 58 million dollars in 2020 and earnings of 16 million dollars in the first quarter of 2021 as its sales and customer base both more than doubled.
The company said it markets and sells 98% of its products through its digital platform, consisting of a website and mobile app, “to a rapidly growing community of loyal customers.” “We generate revenue by selling technically advanced apparel for the modern health-care professional,” the company said in a regulatory filing.
“Our offerings include scrubwear, as well as lifestyle apparel and other offerings, such as lab coats, underscrubs, outerwear, activewear, loungewear, compression socks, footwear, masks and face shields.”
FIGS’ IPO is the first one available on the Robinhood’s trading platform
The company said in its registration filing with the Securities and Exchange Commission that about 1 percent of the 26.4 million shares sold in the offering were allocated to investors on Robinhood’s online brokerage platform.
Robinhood last week introduced IPO Access, a service that allows users to buy shares of companies at IPO prices and before they begin trading on open markets. Robinhood said the service further democratises trading as IPO shares usually go to institutions or wealthier investors.
“The Figs IPO is good news for Robinhood users, as Figs is the best looking IPO we’ve seen so far in 2021,” said David Trainer, CEO of investment firm New Constructs, in a note to clients.
The Los Angeles-based firm backed by billionaire businessman Thomas Tull, has listed its stock on the New York Stock Exchange under the symbol “FIGS”. Goldman Sachs & Co, Credit Suisse, Morgan Stanley, Barclays and BofA Securities were among underwriters for the offering.
Image: FIGS, official web