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IPO Watch: Torrid Preparing For $100 Mln Offering

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Torrid, a plus-sized women's apparel retailer, has filed to raise up to $100 million in an initial public offering.

The City of Industry, California-based retailer was spun out of Hot Topic in 2015. Hot Topic was taken private by Sycamore Partners Management L.P. in 2013.

Torrid plans to list its common stock on the New York Stock Exchange under the symbol "CURV."

Torrid said that the selling stockholders will receive all the proceeds from the sale of shares in the IPO and it will not receive any proceeds.

BofA Merrill Lynch, Morgan Stanley, Goldman Sachs, J.P. Morgan and Jefferies are among the underwriters for the offering.

For the fiscal year ended January 28, 2017 Torrid reported net loss of $29.10 million on net sales of $640.17 million. This compares to net loss of $163.78 million on net sales of $440.72 million in the prior year.

According to data published by NPD Group Inc., the women's plus-size apparel market was approximately $21 billion in 2016, and has grown at more than twice the rate of the overall U.S. women's apparel market. This accelerated market growth is expected to continue.

Torrid noted that it has a significant and attractive opportunity to grow its footprint so as to capture this under-penetrated market.

The company intends to opportunistically open approximately 95 new stores in 2017 and 45 new stores in fiscal year 2018, net of any store closures over the period.

by RTT Staff Writer

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