Neiman Marcus Aims to Head Back to the Public Domain with IPO Filing

Andrew Klips  |

Upscale department store Neiman Marcus filed a registration statement with the Security and Exchange Commission on Monday for a $100 million initial public offering, more than seven years after the company went private. In 2005, the luxury retailer left the public markets via a $5.1-billion sale to private equity firms TPG Capital and Warburg Pincus.

Credit Suisse Group (CS) is leading the offering.

Last month, it was rumored that TPG and Warburg were shopping Neiman with reports that they may be looking to fetch about $8 billion for the company.

The filing sparks a series of questions about the future IPO of Neiman Marcus. For starters, the filing had very few details, omitting the exchange, stock ticker, the number of shares planned to be sold or at what price. Further, the $100 million raise is a paltry amount of money for an IPO the caliber of Neiman Marcus, although that number could easily change as the process moves forward.

The documents filed with the SEC did show that during the twelve month period ended April 27, 2013, Neiman Marcus recorded revenues of $4.35 billion, up 6.5 percent from the year prior period. Operating earnings were $428 million and adjusted EBITDA totaled $623 million, also higher than the year earlier. Profits and sales have been increasing at Dallas-based Neiman Marcus for three consecutive years.

The latest year is closing in on Neiman's record sales of $4.6 billion in 2008.

In May, Kohlberg Kravis Roberts (KKR) reported was trying to strike a deal in which it would buy Neiman Marcus and Saks, Inc. (SKS) and then merge the two industry giants. Saks recently put itself on the block, but nothing materialized from Kohlberg's efforts.

Investors may be keeping an eye on what Warburg Pincus could be cooking. In March, another Warbug company, Bausch & Lomb filed a $100 million IPO filing, shortly before agreeing to be sold to Valeant Pharmaceuticals (VRX) for $8.7 billion on May 27.

Neiman Marcus is one of the largest luxury brand retailers in the world, operating its namesake stores, as well as Bergdorf Goodman, outlet store Last Call and teen-focused Cusp retail locations. Direct-to-consumer operations are under the Neiman Marcus, Horchow, Last Call and Berdorf Goodman brands.

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