Mytheresa Prepares for IPO With Potential $1.6 Billion Valuation


The E-Commerce Company’s Impressive Growth During the Pandemic Fuels Speculation About New Investors

Munich-based e-commerce company Mytheresa established the float for its initial public offering and could be valued as high as $1.6 billion. If this valuation is accurate, it represents tremendous growth from the valuation of roughly $822 million in 2018. With this new, premium valuation Mytheresa aims to sell 15.6 million American Depositary Shares for $16 to $18 on the New York Stock Exchange with ticker MYTE.

Optimistically, Mytheresa would raise $281.6 million, and if underwriters exercise an option to buy another 2.3 million shares, that number would increase to $323.9 million. Do not think, however, that the company will be able to reinvest all this new liquidity. As much as $206.4 million needs to be used to pay off shareholder loans which are due in 2025 and have attached to them a 6% interest rate.

The company does most of its business online and as a result has not suffered in the same way other brands have in the past year. In fact, sales rose about 18% from June 2019 to June 2020. These considerations will make Mytheresa an attractive IPO for a great deal of investors.

In 2013 Ares Management and the Canada Pension Plan Investment Board purchased Neiman Marcus Group for $6 billion and during this transaction managed to acquire Mytheresa in a move contested by debtholders. These private equity firms will still hold around 80% of the company after the IPO.

Dan Kamensky who was charged with securities fraud, extortion, wire fraud and obstruction of justice, was the one responsible for contesting the acquisition. He did so in the hopes that his own hedge fund, Marble Ridge, would be able to purchase the asset at a reduced price.

For Mytheresa, all that is past. The brand can now focus on doing what it does best, online retail. And right now and most likely well into the future, e-commerce will be the dominant sales method in the world of fashion.