Jim FYI
Parent-PRFM (Perfumania Inc)will spinoff and create a subsidiary called Perfumania.com (proposed ticker PF)
Perfumania Inc. To Offer 1M Shares In Perfumania.com IPO
Newstraders - July 29, 1999 11:18
(NewsTraders.com)-- Perfumania.com Inc., a wholly owned subsidiary of Perfumania Inc. (PRFM), revealed that its parent company will offer 1 million shares in conjunction with Perfumania.com's pending IPO.
Perfumania.com still plans to offer 2.5 million shares at between $7 and $9 apiece, bringing to 3.5 million the total number of shares to be sold, according to an amended S-1 document released by the SEC late yesterday.
Based in Miami, Fla., Perfumania.com sells fragrances, fragrance-related products and bath and body items via the Internet.
For the three-month period ended May 31, the company posted a net loss of $764,657 on $161,972 in sales.
Perfumania Inc. will retain a 53.3% stake in Perfumania.com after the offering.
Perfumania.com can be found on the Web at www.perfumania.com and www.perfumaniawholesale.com.
IPO Expectations:
Price per share: $7 to $9
Shares being offered: 2,500,000 common by Perfumania.com; 1,000,000 common by Perfumania Inc.
Shares to be outstanding: 7,500,000 common
Company location: Miami, Fla.
Exchange/Symbol: AMEX/PF
Underwriter(s): Cruttendon Roth Inc; Pennsylvania Merchant Group
Copyright 1999 NewsTraders Inc. All Rights Reserved 11:27 Thursday, July 29, 1999
Perfumania, Inc.
Perfumania loves the sweet scent of money. The company has more than 280 stores in 36 states and Puerto Rico under the Perfumania, Perfumania Plus, Nature's Elements, and Class Perfumes banners. Its stores offer about 175 fragrances (including it own Nature's Elements label) at discount prices. Unafraid to tackle a new sales opportunity, Perfumania is collaborating with World Championship Wrestling to sell upscale fragrances (perhaps Hulk for Women?) through its Web site, which has filed to go public. Its wholesale division distributes fragrances in the US and overseas. The family of CEO Ilia Lekach (also chairman of supplier Parlux Fragrances) owns about 23% of Perfumania (and has options to buy another 17%).
Launched in 1999, like so many other dotcom spinoffs, perfumania.com sure smells trendy. The online sales arm of discount fragrance retailer Perfumania, perfumania.com sells more than 1,700 items, including fragrances and related products (deodorants, moisturizers, powders) and bath and body goods (scented candles, body splashes). perfumania.com's merchandise ranges in price from $5-$100 and includes designer fragrances (Giorgio Armani, Tommy Hilfiger, Cartier) and private-label fragrances. The company also offers its products wholesale to small, specialty retailers. After perfumania.com's planned IPO, Perfumania -- which is controlled by the family of CEO Ilia Lekach -- will own about 67% of the company
Some math posted on SI.
PRFM-----> Buy now ahead of next week. Perfumania.com IPOs next week. Here's why:
Perfumania.com will trade under the symbol PF. 7.5 million offering, of which PRFM will own 67% of it, or 5 million shares.
Let's say it prices at $9 in the current range.
$9 x 5 million shares that PRFM will own ='s $45 million.
ONLY 7 MILLION SHARES OUTSTANDING IN PRFM.
New stake in PF worth $45 million. So $45,000,000 divided by 7,000,000 shares ='s $6.42 a share.
PRFM now 2 5/8. PF not factored into the price of PRFM at all!!!
Big runup expected into IPO next week, $5 easily possible... Just like DBC, IDTC, etc.
Scheduled Pricings:
Expected
Date Name
(Prop. Ticker) Lead
Underwriter No.
Shares
(mil.) Offer
Amt.
(mil.) Expected
Range
Low-High
Week of Aug. 30 AmericasDoctor.com
(AMDR) Warburg Dillon Read LLC
$60.0
Week of Aug. 30 Cybergold
(CGLD) SG Cowen 4.0 $40.0 $9.00 - $11.00
Week of Aug. 30 Gen Trak
(GTRK) Barron Chase Securities, Inc. 0.75 $7.5 $10.00
Week of Aug. 30 Hat World
(HATS) EBI Securities Corporation 1.15 $9.2 $7.00 - $9.00
Week of Aug. 30 Oregon Baking
(MSEE) Barron Chase Securities, Inc. 1.75 $8.8 $5.00
Week of Aug. 30 PCQuote.com
(PCQT) Prudential Securities Incorporated 7.75 $100.8 $12.00 - $14.00
Week of Aug. 30 Rome Bancorp
(ROME) Sandler O'Neill & Partners, L.P. 2.44 $17.1 $7.00
Week of Aug. 30 perfumania.com
(PF) Cruttenden Roth Incorporated 3.5 $28.0 $7.00 - $9.00
By creating the subsidiary, this should bring attention to the parent and increase shareholder value within PRFM.
JMO. |
