American e-commerce company Pattern Group Inc. and some of its investors have raised $300 million through an initial public offering (IPO) in the U.S. stock market, with the IPO priced at the midpoint of the previously marketed range. Pattern Group Inc. is an e-commerce company that resells products on major e-commerce platforms, including e-commerce giant Amazon.com Inc.
According to a statement, the Utah-based Lehi company and shareholders seeking to sell shares collectively sold 21.43 million shares at $14 per share. The statement indicated that half of the sold shares were provided by Pattern Group Inc., while the other half came from its backers. The offering was previously marketed in a price range of $13 to $15 per share.
Based on the latest IPO price and the outstanding shares listed in its SEC filings, Pattern Group Inc.'s market capitalization upon entering the U.S. stock market is expected to reach approximately $2.5 billion.
According to data compiled by Marketplace Pulse based on the number of reviews sellers received in the past 30 days, Pattern Group Inc. ranks second on Amazon's U.S. Marketplace. In 2021, the company completed a $225 million funding round led by Knox Lane, bringing the company's pre-money valuation to approximately $2 billion.
Filings show that for the six months ended June 30, Pattern Group Inc. reported net income of approximately $32.1 million on cumulative revenue of approximately $1.1 billion, compared to net income of $22.6 million on revenue of $841.3 million in the same period last year.
According to its official website, e-commerce company Pattern Group Inc. was founded in 2013 by David Wright and Melanie Alder to help brands conduct promotional and sales activities on third-party online e-commerce platforms such as Amazon, Walmart, and Macy's e-commerce platforms.
The company's core services include purchasing inventory for brands and selling it, helping manage e-commerce fulfillment and logistics, and providing software and marketing services. Pattern Group Inc. serves both as a "third-party distributor for brands" and as an "e-commerce operations service provider + software tool supplier," with the core mission of expanding and strengthening brands' online channels (especially marketplaces like Amazon) and directly converting them into sales.
The e-commerce company's main business includes: Distribution/Reselling - directly purchasing brand inventory and selling under its own name on major platforms; Channel Operations - building and managing stores for brands, covering listing, pricing, content optimization, advertising, promotional strategies, etc.; Fulfillment and Logistics - assisting with inventory management, warehousing and cross-border logistics to improve turnover and fulfillment efficiency; Software and Data Marketing Services - focusing on providing data analysis, competitor and traffic insights tools to help brands improve conversion and repeat purchases.
Since the decline of e-commerce boom benefits during the COVID-19 pandemic, brand aggregators have been in a downward consolidation phase. For example, Razor Group agreed last year to acquire Perch in an all-stock transaction, giving the merged company a valuation of $1.7 billion.
Filings show that after the completion of the U.S. stock market IPO, the two co-founders are expected to hold 86.5% of shareholder voting rights. Knox Lane is expected to hold 4.7% of voting rights, while Banner Capital will hold 2.5%.
The stock offering is being led by Wall Street financial giants Goldman Sachs Group and JPMorgan Chase. The stock is expected to begin public trading on the Nasdaq Global Select Market under the ticker symbol "PTRN" on Friday Eastern Time.