The home furnishings retailer Arhaus has launched its initial public offering (IPO), which could raise $355 million and value the Ohio company at $2.3 billion, according to published reports.
The IPO would see Arhaus offering 12.9 million shares of its Class A common stock, along with 10 million Class A shares held by some of its shareholders, including members of the company senior management team.
The IPO price could be between $14 and $17 per share, with Arhaus stock listed on the Nasdaq Global Select Market under the symbol “ARHS.”
As Furniture Today notes, the underwriters will have a 30-day option to buy up to an additional 3,435,484 shares of their Class A common stock at the IPO price, minus underwriting discounts and commissions.
Bank of America Securities and Jefferies LLC are the IPO’s lead book-running managers and representatives.
Founded in 1986, Arhaus has 70 stores around the country and says its mission is to offer home and outdoor furniture that is “sustainably sourced, lovingly crafted and built to last.”
According to Seeking Alpha, Arhaus enjoyed consistent and substantial growth during the pandemic last year and through the first three quarters of 2021.
Figures from Global Market Insights show the worldwide furniture market was valued at about $546 billion last year, projected to hit $785 billion by 2027. The key drivers for its growth are the development of new residential projects and continued smart city development.
Read more: Restoration Hardware CEO Says Difference Is ‘Plants Don’t Die in Our Stores’
As PYMNTS reported in June, another high-end furniture retailer, Restoration Hardware, has enjoyed record earnings and 80% sales growth in recent years.
On an earnings call, CEO Gary Friedman attributed some of that success to his company’s approach to the in-store experience.
“All you need to do is walk into a mall to notice most retail stores are archaic, windowless boxes that lack any sense of humanity. There’s generally no fresh air or natural light, plants die in most retail stores,” he said. “That’s why we don’t build retail stores; we create inspiring spaces that blur the lines between residential and retail, indoors and outdoors, home and hospitality.”
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