E-commerce Firm Pattern to Price IPO at $14 Each, Mid-Range

(Bloomberg) — Pattern Group Inc., an e-commerce firm that resells goods on marketplaces such as Amazon.com Inc., and some of its investors raised $300 million in an initial public offering that priced in the middle of its marketed range.

The Lehi, Utah-based company and the selling shareholders sold 21.43 million shares at $14 each, according to a statement confirming a Bloomberg News report. Half of the shares were offered by Pattern, and the other half by its backers, based on the statement. The offering was marketed at $13 to $15 per share.

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At the IPO price, Pattern has a market value of about $2.5 billion based on the outstanding shares listed in its filings with the US Securities and Exchange Commission.

The company ranks second in the US on Amazon.com’s marketplace, according to data compiled by Marketplace Pulse based on the number of reviews sellers received in the past 30 days. In 2021, the company raised $225 million in a funding round led by Knox Lane that lifted the company’s pre-money valuation to about $2 billion.

Pattern had net income of $32.1 million on revenue of $1.1 billion for the six months ended June 30, compared with net income of $22.6 million on revenue of $841.3 million in the same period a year earlier, according to the filing.

Founded in 2013 by David Wright and Melanie Alder, Pattern helps brands sell on third-party online venues such as those run by Amazon, Walmart Inc. and Macy’s Inc., its website shows. The company’s services include buying inventory for brands and selling it, as well as helping them manage fulfillment and logistics and offering software and marketing services.

Brand aggregators have been in a consolidation phase since a pandemic-era boom evaporated. Razor Group agreed to buy Perch last year in an all-stock deal valuing the combined company at $1.7 billion.

After the IPO, the co-founders are expected to hold 86.5% of shareholder voting power. Knox Lane is set to have 4.7% of the votes, and Banner Capital would have 2.5%, the filing shows.

The offering is being led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. The shares are expected to begin trading Friday on the Nasdaq Global Select Market under the symbol PTRN.

(Updates with confirmation in first three paragraphs.)

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