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Highlights
- Established in 1986, Arhaus began its business operations by selling products through a shop in Cleveland.
- Arhaus houses more than 1,400 employees, and the company wants to expand its presence and business operations further.
- Arhaus wants to debut on the Nasdaq Global Select Market and trade under the stock symbol' symbol' ARHS.''
The Ohio-based seller of home furnishings, Arhaus, Inc. has filed to go public in the US equities market and has set terms for the public debut. Started in 1986, Arhaus began its business operations by selling products through a shop in Cleveland.
For the past three decades, Arhaus has achieved considerable popularity and has 75 showrooms in the United States. It houses more than 1,400 employees, and the company wants to further expand its presence and business operations.
In the next 15 years, Arhaus wants to expand its number of showrooms to more than double its existing stores, and the company could use the money raised in gross proceeds for expansion plans.
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Arhaus IPO: Key details
The premium home furnishings seller hopes to raise US$ 355 million in the initial public offering and sell 22.9 million shares.
In the prospectus filed with the Securities and Exchange Commission (SEC), Arhaus has kept the price range of the claims between US$ 14 to US$ 17.
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Arhaus is backed by Freeman Spogli, a leading private equity firm, and identifies itself as an omni-channel seller of premium furnishings meant for the home.
The lifestyle brand wants to debut on the Nasdaq Global Select Market and trade under the stock symbol ‘ARHS.'
Bottom line
For home brands, the COVID-19 pandemic boosted sales as people stayed most of the time indoors in the last two years. In the first half (H1) of 2021, Arhaus' net revenue was US$ 355 million, up from US$ 224 million in the same period of 2020.
In addition, money came more efficiently to Arhaus as its adjusted EBITDA rose from US$ 31 million in H1 2020 to US$ 60 million for the six months ended June 30, 2021.
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The company's e-commerce platform also recorded growth over the years. From 11 per cent in 2019, the platform further grew by seven per cent and reached 18 per cent in 2020.
Many retail brands have gone public this year, including Rent the Runway and Warby Parker. Arhaus could soon go public if the final registration statement is approved by the regulatory authorities.
To buy the ARHS stock, investors may get an option of buying the shares before the company gets listed on a stock exchange. Interested investors could research and find out which trading platforms or stockbrokers will offer the pre-IPO stock.
