Human Made, the iconic streetwear brand, is making waves in the fashion industry with its ambitious IPO plans. But is the price tag justified? The company, founded by renowned designer Nigo, has set its sights on a premium valuation, leaving the industry intrigued.
The initial public offering (IPO) of Human Made Inc. has been priced at the upper end of the anticipated range, with shares selling at 3,130 yen each. This strategic move, revealed in a regulatory filing, indicates a substantial IPO value of 17.8 billion yen ($115 million). The company's decision to offer new shares aims to fuel its expansion in Japan and enhance its e-commerce presence.
This IPO has attracted significant attention, with investors clamoring to get a piece of the action. The offering was oversubscribed by more than 10 times, reflecting the market's enthusiasm for the brand. Global investment firms like MY.Alpha Management HK Advisors Ltd. and Asset Management One Co. have shown their confidence in Human Made's potential.
But here's where it gets controversial—is the premium valuation warranted? Analyst Hong Jie Seow from Aequitas Research believes so, citing the company's impressive revenue growth and profitability. Human Made's success in both domestic and international Asian markets sets it apart. However, some might argue that the brand's valuation is a product of the hype surrounding Japanese pop culture, including anime and video games, which has boosted tourism and retail sales in Japan. The yen's recent weakness has also played a role in the surge of interest.
Nigo, formerly the lead designer at LVMH-owned fashion house Kenzo, is no stranger to the fashion industry. With his streetwear brand's IPO, he aims to secure a substantial $18 million for the label's future endeavors.
And this is the part most people miss—the IPO is not just about the money. It's a testament to the enduring appeal of streetwear culture and its ability to captivate global audiences. Will Human Made's IPO live up to the hype? Only time will tell. What's your take on this fashion industry move? Is the premium valuation justified, or is it a bubble waiting to burst?
