Step One Clothing IPO

Who's taking this one?

AFR dot com article: https://www.copyright link/street-t...-at-16-1x-ebitda-1-53-a-share-20210928-p58vat

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Offer Price per Share
$1.53
Total proceeds of the Offer
$81.3 million
Indicative market capitalisation at Completion
$283.6 million

Company Overview
Step One's business model is centred on the following key components:

• Innovative combination of product features: 3D elastic crotch pouch > UltraGlydeTM panels to stop chafing and ride-up > organic bamboo material
• Sustainable and ethical focus: organically grown bamboo > fair working conditions and wages > compostable packaging
• Successful marketing strategy and in-house content: regular colour releases > over 10m website sessions > average conversion rate 7.8% > over 832,000 customer orders (growth of 182% from FY2020)
• Delivering an outstanding online customer experience: over 40,000 5-star reviews

Use of Proceeds

• Inventory investment ($15.7m)
• Advertising and expenditure for US market entry ($12.1m)
• Corporate and public company costs ($3.4m)
• Costs of the Offer ($7.0m)
• Proceeds to SaleCo ($41.3m)

Investment Highlights

• Cash flow positive & innovative product with an ESG focus
• High recent growth in Australia & UK markets with US expansion planned for future growth
• 100% online direct to consumer business model
• 100% brand owned & flexible manufacturing process
• Highly focussed, content driven digital and marketing strategy