JENNA LANE IPO NETS $4.9M
Byline: Jennifer L. Brady
NEW YORK — With plans to build its business by increasing sales of imported sportswear, Jenna Lane Inc. last week raised $4.9 million after costs in an initial public offering of 600,000 units priced at $10.13 each.
Each unit consisted of two shares of common stock and one class-A warrant exercisable at $7 a share. The units were priced at $5 each.
On Wednesday, the units in over-the-counter trading closed at 10 1/8, up 1/8.
Jenna Lane, founded in 1995, is a vertically integrated manufacturer of junior, misses’ and large-sized basic and fashion sportswear. However, the company said, an opportunity for expansion will be in the growth and development of imported fashion sportswear.
“Part of management’s long-term plan is to continue to expand its importing activities,” which represented about 15 percent of revenues for the nine months ended Dec. 31, 1996, the company said.
Jenna Lane added that “reduced trade restrictions, increased competition in the domestic market and other factors” have enhanced its ability to substantially increase its activities in the import area.
In the nine months ended Dec. 31, Jenna Lane’s earnings dropped 54.6 percent to $117,106, or 4 cents a share, from $257,710, in the face of increased expenses, even as sales grew 64.5 percent to $25.6 million from $16.5 million.
The majority of the company’s sales are in private-label apparel for mass merchandisers and specialty chains.