** Shares of Figs FIGS.N up 10.1% to $5.65 premarket after buyout bid from private equity firm Story3 Capital Partners

** Story3 submitted cash offer of $6/sh, valuing medical scrubs maker at over $1 bln, the PE firm said late Tues

** The $6 bid represents 17% premium to stock's last close. YTD, stock has shed 26%

** Through Tues, Figs had ~$870 mln market value, per LSEG

** Co was valued at more than $4.5 bln when it went public in May 2021 amid jump in demand during COVID outbreak, but sales and profits have slowed since

** Its shares hit an all-time high of $50.40 a month after the IPO, which priced at $22, but they declined sharply and have traded below $10 since early 2023

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))