Lulu's raises 92 million dollars in IPO

Bloomberg has reported that Lulu’s Fashion Lounge Holdings Inc. has raised 92 million dollars in an IPO priced at the bottom of a marketed range. On Wednesday, Lulu’s sold 5.75 million shares for 16 dollars apiece.

Shares were marketed between 16 dollars and 19 dollars. Currently, Lulu’s investors include H.I.G, Canada Pension Plan Investment Board, and Institutional Venture Partners.

Debra Cannon, a co-founder of Lulu’s, is expected to exit the board of directors after the IPO. The IPO was led by Goldman Sachs, Bank of America, and Jefferies Financial Group. Shares have begun trading today under the ticker LVLU.

Lulu’s approach to pricing at the bottom of the market range is a risk-averse approach in line with the currently temperamental retail market that is thankfully showing sounds of rebound after the pandemic. Nevertheless, the pricing point for the IPO is pivoted to better position key stakeholders in not only reaching but surpassing the company’s valuation.