The online vitamin and supplement retailer iHerb has appointed three major investment banks to oversee its initial public offering. An initial public offering, or IPO, is when a private company sells shares to the public for the first time. JPMorgan Chase, Morgan Stanley, and Citigroup will help iHerb sell those shares.
The company is seeking to raise about $500 million from the offering. Details are still being finalized and could change. The share sale might take place later this year.
iHerb's decision to pursue an IPO coincides with a surge of activity in the capital markets, as many firms look to take advantage of a strong start to the year for public offerings. In a bid to strengthen its domestic footprint, iHerb bought Kroger Co.'s Vitacost earlier this year. According to iHerb's finance chief Mike Cody, as reported by Bloomberg News, the company achieved over $2.8 billion in revenue last year and remained profitable.
Get your free investing masterclass bonus when you join Market Briefs, our free daily newsletter
iHerb is an online retailer of vitamins, supplements, and other health and wellness products. It is based in Irvine, California. Its product range includes areas such as sports nutrition, beauty products, bath and personal care items, groceries, baby supplies, and pet care. The retailer caters to more than 15 million shoppers in over 180 nations and employs over 3,000 people worldwide.
Currently, iHerb is a private company. An IPO would allow anyone to buy and sell shares on a public stock exchange.
The company first filed confidentially for an IPO in 2021 before abandoning those plans in early 2022. Now, with the new bank appointments and a $500 million target, deliberations are ongoing.
iHerb's renewed push for an IPO follows a period of strategic growth and market adaptation. After shelving its initial plans in 2022 due to unfavorable market conditions, the company has since strengthened its operations, including the integration of Vitacost. The acquisition of Vitacost from Kroger earlier this year has bolstered iHerb's domestic reach, allowing it to better compete with other online health retailers.
With a profitable business model and a global customer base, iHerb aims to capitalize on the current wave of IPO activity, as many companies seek to go public amid favorable investor sentiment. Other firms that have secretly submitted IPO paperwork and might debut on public markets soon include Inspire Brands Inc., owned by Roark Capital, and Blackstone-backed sandwich chain Jersey Mike's Subs.
Subscribe to Market Briefs, our free daily newsletter, and claim your bonus investing masterclass
