Neiman Marcus targets $100m New York float

City A.M. Reporter
LUXURY retailer Neiman Marcus yesterday filed registration papers for an initial public offering (IPO) as its private equity owners eye an exit for their long-held investment in the luxury department store operator.

The Dallas-based retailer has been in the hands of private equity since 2005, when TPG Capital and Warburg Pincus LLC led a group that bought Neiman Marcus for $5.1bn (£3.3bn).

The IPO registration may signal little more than Neiman Marcus’ desire to keep its options open. Private equity-owned companies routinely try to sell themselves to other companies or funds while they are also preparing for an IPO in a practice referred to by investment bankers as dual-track.

Neiman, which operates 41 namesake departments stores, Bergdorf Goodman as well as the lower-price outlet chains Last Call and CUSP, would not receive any proceeds from the IPO, according to the prospectus filed with US regulators. All shares in an IPO would be sold by existing shareholders.

The initial prospectus did not set out a timeline for the IPO, how many shares will be sold and by whom, nor on which exchange Neiman shares would trade.

The company indicated it was asking to raise up to $100m, but that amount is the standard used in many IPO filings as a placeholder to calculate a company’s registration fees.