NEW YORK (TheStreet) -- Neiman Marcus recently filed for an initial public offering with the Security and Exchange Commission. The current market environment is favorable for consumer IPOs and the company has been performing well, so you should consider getting in.
The company filed for a $100 million IPO. However, that sum will most likely change, because it is a placeholder used to calculate registration fees. Details of the IPO, such as the range of the offer price or the number of shares sold are not yet set.
The luxury retailer was publicly traded until 2005 and then acquired by the private equity firms Warburg Pincus and TPG. In 2013, the company had filed plans to go public. However, TPG and Warburg Pincus sold it in a $6 billion leveraged buyout to Ares Management LLC (ARES) and the Canada Pension Plan Investment Board, which are the current owners.
Here are three reasons why you should consider buying when the company is public again:
1. Favorable market environment provides ground for successful IPO
Consumer IPOs raised more than $8 billion this year. Neiman Marcus will be one of the most high-profile IPOs in the luxury fashion industry, which profits from higher consumer spending in the U.S. and a drop in cotton prices. Additionally, the American stock markets are performing well at the moment, which is good for luxury brands and could lead to a better valuation.
Moreover, the global luxury fashion market is expected to grow from $308 billion in 2015 to $354 billion in 2019, said Neiman Marcus in its IPO filing. Considering the market's growth potential and recent economic trends, no time like the present.