PLBY filed an S-1 announcing that nearly all of the shares (21.9mm) owned by the collection of PE owner Rizvi and the SPAC PIPE investors and sponsors are being offered for sale. This deal will take the float from about a third of shares outstanding to about 95%. Some institutions were limited in investing in PLBY due to the float dynamics. Now real growth investors can step in and take advantage of what we see as a huge Tail investment opportunity. The stock has already doubled since we went long a few weeks ago, and surely the market will take this sale as negative at first with SPAC participants cashing in. But such a sale was expected, Rizvi is a private equity entity, not a public market growth investor. Holding PLBY for the long term growth opportunity was most likely never the plan when they decided to take it public again. We’ve made allusions to our RH call a few times with this PLBY Long. Recall that the main private equity investor in RH, Catterton Partners (which we consider one of the best consumer PE firms), sold out of its RH stake in 2013 after the IPO with the stock in the 60s. Two years later RH hit $105, and currently trades at $720. Catterton simply had to take its gains and move on to the next PE deal. Even after the huge run in the stock we continue to think it has a lot of runway over the long term as PLBY proves to be one of the most valuable global lifestyle brands.
We're hosting a deep dive Black Book on May 11th at 11am to review the bull case on PLBY and why it will be a $10bn company in 3-5 years. We hope you can tune in, details below.
Call Details:
Date/Time: Tuesday, May 11th at 11AM EDT Add to Calendar: CLICK HERE
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Confirmation Number: 13719281
Live Video Link CLICK HERE
