RIhanna’s Savage X Fenty Lingerie Weighing An IPO At A $3 Billion Valuation

RIhanna’s Savage X Fenty Lingerie Weighing An IPO At A $3 Billion Valuation

The Silk Road: Already a billionaire because of her beauty company, Rihanna is now considering taking her lingerie company public. ihanna may soon need a bigger umbrella. On Thursday, Bloomberg reported that the 34-year-old singer-turned-billionaire entrepreneur is working with Morgan Stanley and Goldman Sachs on an initial public offering of her lingerie brand, Savage X Fenty. The IPO, which could happen as early as this year, could value Rihanna's body-inclusive company at more than $3 billion. Shannon Coyne, cofounder of consumer products consulting firm Bluestock Advisors, says the premium valuation likely stems more from Rihanna's star power than a proven track record of sales. She points to the fact that the Savage X Fenty brand is less than five years old and has just a handful of brick-and-mortar stores in operation. "At this time, $3 billion seems rich because her items are not expensive, so she would have to do a lot of volume in lingerie, or around $140 million in EBITDA," says Coyne. But the brand does have momentum. Savage X Fenty began the year by announcing a new funding round of $125 million led by Neuberger Berman to support its first U. S. boutiques and overseas expansion plans.