Reformation IPO Prices at $15 Per Share on NYSE

Reformation Inc., a sustainable womenswear brand, priced its initial public offering (IPO) at $15 per share on Wednesday, July 29, 2020, with its shares set to debut on the New York Stock Exchange (NYSE) on Thursday, July 30, 2020. The IPO pricing landed at the low end of the company's previously projected range of $15 to $17 per share. The offering is anticipated to close on Friday, July 31, 2020. The company's stock will trade on the NYSE under the ticker symbol REF. Reformation was founded in Los Angeles in 2009 by Yael Aflalo. Over the years, the brand has expanded its physical presence to over 70 stores across the United States, Canada, France, and the United Kingdom. Since 2019, the private equity firm Permira has held a majority stake in Reformation. According to Reformation's filing with the Securities and Exchange Commission (SEC), Permira is expected to retain "significant influence" over the company post-IPO, owning 49.2% of its stock. This influence may extend to decisions requiring stockholder approval, potentially creating divergence from the interests of other shareholders. Yael Aflalo stepped down as CEO in mid-2020, following accusations of racism within the company, which surfaced amid the broader Black Lives Matter movement. Hali Borenstein, who previously served as the company's president, assumed the CEO role. The Aflalo Family Trust is slated to hold approximately 19.8% of Reformation's shares after the IPO. In its IPO announcement on July 20, Reformation had indicated an expected price range between $15 and $17 per share. The company plans to offer 14.06 million common shares as part of this initial public offering. The exact start time for trading on the NYSE was not announced at the time of reporting, with updates expected once trading commences. Reformation's business model emphasizes sustainability in its apparel production, a key differentiator in the competitive fashion market. The company's expansion into multiple international markets highlights its global ambitions. The involvement of a major private equity firm like Permira underscores the brand's growth trajectory and its appeal to institutional investors seeking opportunities in the retail sector. The SEC filing also detailed the company's financial performance and strategic outlook, providing investors with essential information for evaluating the stock's potential.