Although the stock market started the week on a rough note, investors are also gearing up for a big splash in the IPO world. This week really will see the fall debut season heat up with 14 new offerings. One such highly anticipated event is the upcoming Brilliant Earth IPO set for this week.
As a key purveyor of fine jewelry, Brilliant Earth may not necessarily be a company investors have come across. This consumer discretionary segment is one that is run by a few high-profile players. However, increasing demand for alternative jewelers focused on niche growth sectors has popped up. Brilliant Earth appears to have filled this niche nicely.
The company’s business started in 2005, targeted toward the millennial bridal jewelry market. Brilliant Earth’s ability to provide lower-cost alternatives via lab-grown diamonds in addition to naturally mined diamonds made sense for its clientele. The company is also a top choice for consumers concerned about sustainable and ethical jewelry purchases.
Let’s dive into some of the details of this highly-anticipated IPO, and of BRLT stock.
What to Know About the Brilliant Earth IPO and BRLT Stock
Brilliant Earth is expected to raise $250 million as a result of its IPO. Approximately 16 million shares will be offered at a range of $14-$16 per share. The company will list on the Nasdaq under the ticker BRLT this week. Analysts expect shares will begin trading this Wednesday, Sept. 22.
Brilliant Earth has seen significant initial investor interest, meaning this IPO could come in at the higher end of the range. 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.
This initial public offering is one of a number of new IPOs this week. Accordingly, those looking at this list may find that Brilliant Earth gets lost in the mix. Given how hot equity markets have been of late, this surge in IPO activity is perhaps to be expected. However, the Brilliant Earth IPO may fly under the radar somewhat in this light. For those looking to get in, this could be a very good thing.
Additionally, given how bearish sentiment is in the markets right now, expectations are that this week’s IPOs could see some initial weakness. Accordingly, investors considering whether to jump in right away or wait will have a difficult decision on their hands.
On the date of publication, Chris MacDonald 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.