WASHINGTON -- Sirena Apparel Group Inc. has become the second swimwear manufacturer to dive into the IPO market this month.
The South El Monte, Calif., company, whose lines include the licensed Anne Klein label and its own Sirena collection, filed a registration statement with the Securities and Exchange Commission last week for an initial public offering of 1.5 million shares.
The offering is expected to net $8.01 million.
As reported, Beach Patrol Inc., a Carson, Calif., company that makes Baja Blue, Rebel Beach and four other swimwear lines, early in June filed for an offering of 2 million shares, half of which are being sold by stockholders. Beach Patrol expects to net $9.9 million.
A stock analyst who did not want his name used said he does not expect the two offerings to detract from one another. There is room in today's market for both, he said.
Henry R. Mandell, Sirena's senior vice president, chief financial officer and secretary, said the near-simultaneous filings are coincidental, but added, "I think it's a good sign for the women's swimwear business that companies like Sirena and Beach Patrol are able to approach the market."
Sirena intends to use proceeds to reduce its factor debt, which totaled $9.7 million on May 31; to pay down advances in a revolving line of credit from Signal Capital Corp. that totaled $4.6 million at the end of May, and to repay a $207,000 term loan from Signal.
As part of its business strategy, Sirena intends to acquire additional prominent brands and to significantly broaden its private label operations, the registration statement said.
Sirena has recently become profitable after operating in the red for several years. The company posted income of $742,000 in the nine months ending March 31, 1994, against a loss of $535,000 a year earlier. Net sales rose to $23.3 million from $20 million.
Signal, which acquired Sirena in a leveraged buyout in the late Eighties, now owns all of the company's outstanding common stock, all of its series B preferred stock and 94.2 percent of the outstanding series A preferred stock. Concurrent with the offering, series A stock will be converted to common stock, while the series B and pre-offering common stock will be canceled.
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