Embattled retail group Steinhoff International revealed on Monday that its US-based retail chain Mattress Firm has applied for an initial public offering of its common stocks to the United States’ Securities and Exchange Commission (SEC) in an effort to have it listed on the New York Stock Exchange (NYSE).
Steinhoff has been struggling to get back on its feet following an explosive accounting scandal in 2017 that led to investors losing billions and the resignation of implicated former CEO Markus Jooste.
“Mattress Firm intends to apply to list its common stock on the New York Stock Exchange, subject to notice of official issuance, under the symbol ‘MFRM’,” Steinhoff said in a Sens statement.
The group, however, reported that the number of shares to be offered and their price range is still to be determined.
“A registration statement relating to these securities has been filed with the SEC but has not yet become effective,” the group noted.
Steinhoff holds a 50% stake in Mattress Firm, which is touted as the US’s leading speciality bedding retailer.
However, much like shareholder Steinhoff, the Mattress Firm has seen its share of financial woes in the last few years.
In 2018 – just two years after Steinhoff bought its share of the business for more than $3.8 billion – the bed store battled huge debt and subsequently filed for Chapter 11 bankruptcy protection. This saw the company reduce its store count significantly from 3 200 to 2 600 stores.
Despite its financial struggles, Steinhoff has recently shown signs of crawling back to recovery. In December 2021, the group’s share price registered a more than 20% surge, after it announced that its creditors had voted to support Steinhoff’s settlements with the disgruntled former owners of Tekkie Town and Trevo Capital.
News of Steinhoff’s plan to list the Mattress Firm on the NYSE has also been well received by the local market, with its JSE share price climbing around 8% in morning trade to R5.39 on Monday.