As the current IPO season continues, one company that makes its public debut today may prove to be a jewel in the crown of companies that have begun trading this week. Brilliant Earth (NASDAQ:BRLT), a pioneer in the field of ethically sourced fine jewelry, begins trading today on the Nasdaq as BRLT stock.
Late yesterday, the company announced that its IPO will consist of 8,333,333 shares of its Class A common stock, priced to the public at $12 per share. Pending no further complications, all parties involved expect the offering to close on Sept. 27.
Underwriters for the deal include J.P. Morgan, Credit Suisse, Jefferies Group and Cowen. The agreement includes a provision granting all underwriters a “30-day option to purchase up to an additional 1,249,999 shares of its Class A common stock at the initial public offering price.”
What else do you need to know about both Brilliant Earth and BRLT stock? Let’s discuss what we can expect as trading begins.
BRLT Stock: What to Know About the Brilliant Earth IPO
- Founded in 2005, Brilliant Earth is based out of San Francisco, California. At the company’s core is the belief that ethically sourced jewelry can be an “effective tool for social change.”
- Although its name might call to mind images of something purely environmental, Brilliant Earth is a digital-first company that has grown swiftly through e-commerce, offering gemstones and other jewelry items as well as diamonds and acquiring more than 370,000 global customers through direct sales.
- The company prides itself on creating a new standard for its industry by prioritizing transparency and socially responsible practices in the mining of its diamonds. It is a certified and audited member of the Responsible Jewelry Council.
- Brilliant Earth has also attempted to bridge the gender gap in jewelry design, launching the Mx Collection last year that “sought to blur the lines between traditionally feminine and masculine styles.”
- According to a disclosure document, filed with the U.S. Securities and Exchange Commission, Brilliant Earth is setting aside as much as 2% of its shares for Robinhood (NASDAQ:HOOD) retail investors, which amounts to roughly 330,000 individual shares. Although this type of trend can lead to quick, superficial spikes generated by motivated retail investors and social media hype, some analysts see plenty of upside for BRLT stock as well.
- The number of shares offered in the IPO, as well as their price points, are down from the company’s initial statements. Brilliant Earth initially planned to offer 16.7 million shares at a price between $14 and $16, according to Brilliant Earth’s SEC filing.
- As InvestorPlace contributor Chris MacDonald notes, “the company’s annual revenue surged 56% year over year to $323 million. Thus, its expected valuation at its IPO of $1.4 billion is roughly 4 times sales, in line with the broader sector.”
- Although Brilliant Earth technically only become profitable in 2020 after demonstrating revenue of $21.6 million, it reported a net sales figure of $163 million, an increase of 78% from the previous year.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
