Mossimo’s Bow Seen Stirring Some Interest Among IPOs
Mossimo Inc.’s Wall Street debut this week should stir some interest.
The Irvine-based company, which designs and markets men’s active wear and designer sportswear, will be launching a 3-million-share offering this week. Underwriter Merrill Lynch & Co. said the expected price range is $14 to $16 a share.
“Demand is overwhelming,” said Michael Essex, syndicate manager at McDonald & Co. Securities Inc.
Mossimo is offering 2 million shares and company founder and Chief Executive Mossimo Giannulli will sell 1 million. He will hold an 80% stake in the company after the offering.
Mossimo’s products are distributed to about 770 department stores, specialty retailers and active-wear stores in the U.S. Last year, net income almost doubled to $11.5 million from $6.6 million in 1994. Sales rose to $72.0 million from $44.3 million.
David Menlow, president of IPO Financial Network Corp., expects Mossimo shares to open three to five points higher than the offering price.
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