Tendam is finalizing its IPO with the intention of filing an announcement of intent to list by Friday, known as an ITF by its English acronym. The textile company, which owns brands such as Cortefiel, Springfield or Pedro del Hierro, wants to use the latest financial reports to set the price of its debut. Moreover, the figures they present suggest very high profits. ebtida (gross operating result) margin is actually second among peers at 24.3%, behind only Inditex, which reached 27.4% last year. However, they are followed by Next with 22.4%, Uniqlo with 20.4%, H&M with 15.8% and GAP with just 7.5%.
In the same spirit, Tendam foresees that Current EBITDA margin is gradually improving in the range of 0.8 to 1.2 percentage points relative to fiscal 2023, driven by, among other things, “the greater weight of the online business, the ability to achieve sustainable gross margins, and improved profitability of its own business.” stores and strong revenue growth on a like-for-like basis. According to preliminary financial information for the first quarter of the year ended May 31, 2024, Tendam’s onshore like-for-like revenue increased 6%, with EBITDA growth expected to range from 8.5% to 10.4%.
Gross profit, which allows us to evaluate the quality of the sale depending on its added value, reached 62.5%. This percentage not only represents a 1.2 percentage point increase over fiscal 2022, but also puts it ahead of all other competitors, including Inditex, with a gross margin of 57% of sales.
Last year, the total revenue of the company led by Jaume Miquel was 1.288 million euros, representing an increase of 6.5%. Regular EBITDA reached €313.3 million last year, up 9.8% compared to 2022 and 13% compared to 2021.. Strong cash generation also resulted in free cash flow of €112.9 million for the year, up 29.8% from 2022.
How much would it be worth on the stock market?
The Puig IPO has revived the dry IPO (public offering) market in Spain in recent years. The good results currently shown by the shares of the Catalan company that owns Carolina Herrara are stimulating other potential stock market debutants on the Spanish market. Thus, Europastria leaves, and Tendam himself looks closer and closer. The textile company will also return to the trading floor in July next year, which has been highly anticipated. And based on the fiscal year 2023 results recently announced by Tendam, The company’s valuation on the stock market will be approximately 2.1 billion euros.excluding discounts on accommodation, according to calculations by elEconomista.es
The company’s goal is to take advantage of the best-case scenario experienced by the textile sector, as well as the Tendam scenario. In 2023, its gross profit grew by almost 10% year-on-year, reaching €313 million EBITDA. At the same time, the company managed to reduce net debt by almost 50 million euros, bringing it to 611 million (300 million if we exclude short-term and long-term lease obligations).
Taking into account these data and taking into account the average Ev/EBITDA ratio of its main peers (such as Inditex, Next, H&M or OVS and others) in 2023 of 8.7 times, Tendam’s capitalization on the stock market will be about 2.1 billion euros . At this potential market value there will also be apply the discount required by institutional investors when they enter the primary market during an IPO and usually range from 10% to 15%. Taking into account most of the discount, the valuation of the textile company that owns Cortefiel would be around 1.8 billion euros.
The company will take advantage of the good moment that the market is experiencing and take a closer look at this placement window. goal of placing 25% of capital on the stock market (the minimum required by general rules), according to sources familiar with the operation. Taking into account the regulatory time required by the regulatory authorities to carry out this operation, The deadline for publication is July 12.. If this does not happen by then, then the next window where this can be done will be mid-October.