On Thursday, FIGS Inc., the Santa Monica, California-headquartered American healthcare apparel brand best-known for its scrubs, leapfrogged more than 29 per cent on its stellar public market debut, pointing towards a robust Wall Street appetite for new stocks following a dour 2020.
On top of that, Hollywood actor Will Smith- and billionaire businessman Thomas Tull-backed FIGS Inc., a manufacturer of medical facial masks, scrubs and shields that had witnessed a robust uprising in revenues last year during the peak of pandemic, became the first company ever in the history of US IPO (Initial Public Offerings) markets, where retail traders had been allowed to purchase into the company’s IPOs through Robinhood’s online platform.
Previously, US IPOs were exclusive items for the Wall Street’s institutional investors. Nonetheless, online brokerage firm Robinhood had launched a new platform earlier this month aimed at offering its users an opportunity to purchase into IPOs in a bid to decentralize the US money market, while the online brokerage firm claimed to have established connexions with Wall Street lenders to get a hand on the initial offerings.
FIGS Inc jumps in US public market debut
In factuality, FIGS Inc had opened up the day at $28.30 per share, well above an initial offerings price tag of $22 a share, while the medical scrubs maker had wrapped up the day more than 35 per cent higher to $29.80 apiece.
However, in the midday trading, FIGS Inc shares had fallen below its IPO tags, suggesting that the initial jump might be extremely overrated as US IPO market is believed to be at its strongest in more than half a decade.
Meanwhile, referring to an upsized FTGS Inc IPO that took place in collaboration with Robinhood, in which the facial mask maker had offered 26 million Class A shares - far beyond its target range - raising as much as $580.5 million and valuing the company at $4.57 billion, FIGS Inc co-founder, Trina Spear said, “We were very focused on going public the traditional way...
and we even partnered with Robinhood because we wanted to give healthcare professionals access to invest in the IPO”.