Medical Apparel Company FIGS Prices IPO Shares at $16 to $19 Each, Set to Raise Up to $427 Million

By Mariliana Fotopoulou Thursday, May 20, 2021

FIGS Inc., a California-based company that produces health care apparel products, announced today the pricing for its upcoming initial public offering (IPO). The company will be listed on the New York Stock Exchange (NYSE) under the ticker symbol “FIGS.”

Medical team.

Capitalizing on Recorded Business Growth

Healthcare apparel company FIGS announced today the pricing of its IPO through which it will offer 22.5 million Class A shares. In the IPO, the company is offering 5.875 million of its Class A shares, while its largest stockholder, Tulco, is offering 16.625 million shares of Class A common stock.

According to the IPO filing, FIGS will not receive any capital from Tulco’s stock sale. The price per share is expected to be between $16 and $19, meaning that the company will raise between $360 million and $427.5 million.

The company announced two weeks ago it filed for an IPO. Banking business giants, including Goldman Sachs, Morgan Stanley, Barclays, and Credit Suisse, will serve as lead underwriters in the IPO.

“We have revolutionised the large and fragmented healthcare apparel market. We branded a previously unbranded industry,” Figs wrote in its IPO filing.

FIGS is a Santa Monica-headquartered direct-to-consumer (DTC) healthcare apparel company founded by Heather Hasson and Trina Spear in 2013. The business strives to empower and serve healthcare professionals by creating sophisticated apparel products with unique style and comfort. The company generated around 98% of business sales from its website and mobile app.

Its DTC approach allows the company to “engage with our community of health care professionals before, during and after purchase,” FIGS said in the filing.

The number of active consumers surged from 600,000 to about 1.3 million in 2020, 60% of which were returning business customers. Last year, a net business revenue surged by 138% to $263.1 million in 2020 and 172.4% to $87 million in Q1 this year.

Net business income last year came in at $57.9 million, a significant jump from the net loss of $300,000 recorded in 2019. As for Q1 2021, the company reported a net income of $16 million, compared to $4 million in the year-ago period.

The company said it received a boost during the coronavirus pandemic as hospitals and medical offices were forced to buy scrubs and additional healthcare apparel.

“While we demonstrated consistent and significant growth prior to 2020, we believe the pandemic has accelerated awareness of the Figs brand and a shift in purchasing decisions that will continue to drive future growth,” FIGS wrote in its S-1 statement.

The healthcare apparel company has secured a total of $60 million in private equity, with Hasson and Spear planning to use the IPO proceeds for working capital, research, and development but also to invest in marketing, capital expenditures, technologies, and other business areas.

The company currently has more than 200 employees, while most of the fabric used for FIGS products comes from its two main Chinese suppliers. The rest of the raw materials, including content labels, elastics, buttons, clasps, and drawcords, come from suppliers based in Asia-Pacific.


Healthcare apparel and lifestyle company FIGS announced it is offering 22.5 million shares in its upcoming IPO at prices between $16 and $19 per share. The company expects to raise between $360 million and $427.5 million in the offering.

About the Author

Headshot for author Mariliana Fotopoulou

Mariliana has an MSC in consumer analytics and business strategy. She has a special interest in fast-moving industries and big data.

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