When Will Spanx IPO and How Can You Invest in the Stock?
Blackstone took a majority stake in Spanx at a $1.2 billion valuation. When will Spanx IPO? Can you invest in the stock?
Oct. 27 2021, Published 8:10 a.m. ET
Spanx has been in the news after its founder and CEO Sara Blakely gave all the employees $10,000 and two plane tickets to travel anywhere in the world. Meanwhile, many people wonder whether Spanx has stock or if the company will IPO soon.
Blakely founded Spanx in 2000 with only $5,000 in savings. She made the money selling fax machines and hadn’t taken any business classes. The womenswear brand has grown rapidly since then. The company has a mission to make innovative solutions from a woman’s point of view.
Blackstone acquired a majority stake in Spanx.
On Oct. 20, Blackstone announced that it would take a majority stake in Spanx. Blackstone, which is the world’s largest alternate investment manager, would take the stake through its Blackstone Tactical Opportunities businesses and Blackstone Growth (BXG). After the deal, Blakely would continue to have a significant stake in the company. She, along with other senior managers, would still run the company's operations.
After the transaction, Blakely would move to the position of executive chairwoman. Blackstone and Spanx would create an all-female board for the company. Commenting on the transaction, Blakely said, “I am as excited today for the future of SPANX as I was when I started it 21 years ago. Now together with Blackstone, we will have even more opportunity to further our mission of making the world a better place… one butt at a time!”
Sara Blakely's net worth
According to Forbes, Blakely has a net worth of $1.2 billion. Apart from Spanx, she also holds a small stake in the NBA's Atlanta Hawks. Blakely signed the Giving Pledge in 2013 and has promised to donate half of her wealth towards philanthropy. The Giving Pledge was founded by Bill and Melinda Gates and Warren Buffett to encourage wealthy people to give away most of their wealth towards philanthropy.
Spanx valuation
The deal with Blackstone valued Spanx at $1.2 billion. While announcing the transaction, the company said, “The acquisition will enable SPANX to accelerate its already rapid digital transformation and strong online presence in the e-commerce channel, expand its global footprint, and fuel its commitment to creating innovative, ground-breaking products for its customers across even more categories.”
When will Spanx IPO?
As a private equity company, Blackstone acquires companies and later lists them. For example, in 2019 it took a majority stake in Bumble. The stock listed in the first quarter of 2021 at a significant premium. Blackstone has cashed out and sold some of its stake in the popular dating app. Bumble stock tumbled in September when Blackstone announced the stake sale.
Eventually, Blackstone might look for a listing for Spanx even though no timeframe has been provided. The IPO would be worth watching considering the popularity of Spanx products.
How can you invest in Spanx stock?
If you're looking at direct exposure to Spanx, you would have to wait for the listing. However, by investing in Blackstone stock also you can get exposure to Spanx since the company owns the majority stake in Spanx. Spanx’s valuation is only a tiny fraction of Blackstone’s over $170 billion market cap.