According to multiple reports, the singer Rihanna’s lingerie brand, Savage X Fenty, is planning to go public in a debut that could value it at $3 billion.
So what else do you need to know?
According to reports, Rhianna’s company is in early discussions with investment banks Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS). These talks apparently include a timeline of the end of 2022 for the debut.
What to Know About a Savage X Fenty IPO
So is Rihanna’s lingerie brand coming public? Importantly, there is no confirmation of these reports. Savage X Fenty did not respond to a request for comment from Insider and other publications. This means that, while investors may be excited, they should proceed with caution.
The excitement does come with good reason, though.
Rihanna and her lingerie company have received attention since its launch, thanks to its inclusive marketing, sizes and runway shows. Rihanna serves as its CEO and creative director and currently has a 30% stake in the company. Recent accomplishments for Savage X Fenty include a $125 million funding round and the opening of its first retail store in the U.S.
Why It Matters
Savage X Fenty is increasingly competing against established lingerie brands such as Victoria’s Secret (NYSE:VSCO), which is in the midst of a major turnaround effort. A public listing could help take Savage X Fenty to the next level.
More broadly, a public listing by Savage X Fenty could help to inject some life into the IPO market, which is down markedly this year amid deteriorating market conditions. Last year saw an all-time record for IPOs, with 1,035 companies coming to market.
So far in 2022, there have only been 72 IPOs compared to more than 300 completed in the same time last year.
What’s Next
An IPO of Rihanna’s lingerie company has not been announced and no firm timetable has been put on a possible deal. Right now, a Savage X Fenty IPO is only a rumor. For the time being, investors will have to hope that where there’s smoke, there’s fire when it comes to Rihanna’s lingerie business going public this year.
On the date of publication, Joel Baglole 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.
