E-commerce accelerator Pattern Group debuts on Nasdaq following IPO

Premarket trading in shares of U.S.-based Pattern Group, a so-called e-commerce accelerator, is available on the Freedom Broker client trading platform. Today, September 19, the shares will be listed on the Nasdaq under the ticker PTRN.

Pattern Group Inc., an e-commerce firm that resells goods on marketplaces such as Amazon.com Inc., and some of its investors raised $300 million in an IPO that priced in the middle of its marketed range of $13-15 per share. The company and the selling shareholders sold 21.43 million shares at $14 each, Bloomberg reports. 

The deal was run by Goldman Sachs, JPMorgan, Evercore ISI, Jefferies, Baird, BMO Capital Markets, KeyBanc Capital Markets, Needham & Co., and Stifel/William Blair.

The company plans to use the proceeds for working capital, general corporate purposes, and potential acquisitions or investments in complementary technologies and businesses. A portion will also cover anticipated tax obligations related to restricted stock units.

Pattern Group announced it intends to go public in August. At its previous funding round in 2021, Pattern was valued at approximately $2 billion.

Founded as iServe in 2013 by David Wright and Melanie Alder, Pattern is a so-called e-commerce accelerator that helps brands grow faster across hundreds of global marketplaces such as Amazon, Walmart, Target, eBay, TikTok Shop, and Mercado Libre, Reuters writes.

The company combines proprietary technology with on-demand human expertise to manage pricing, advertising, content, forecasting, and customer service. Its platform leverages AI and machine learning, notes Digital Commerce 360, an industry news site. It allows brand partners to optimize performance at scale: they can make adjustments to product listings, pricing, and marketing campaigns without building large in-house teams.

Pattern Group derived 94% of its revenue from consumer product sales on Amazon, Seeking Alpha writes. In addition, Amazon accounted for over 75% of the total U.S. marketplace retail sales in 2024. 

For the six months ended June 30, the company reported net income of $32.1 million on revenue of $1.1 billion, versus $22.6 million in profit and $841.3 million in revenue in the same period a year earlier.

Pattern Group is growing rapidly, notes IPO expert Donovan Jones on Seeking Alpha. The company demonstrates revenue growth, margin stability, and efficient sales and marketing spending. Given the "robust" growth and profitability, Jones expected institutional demand for the IPO to be strong.

Shortly before the IPO, Freedom Broker analyst Alem Bektemirov assigned Pattern Group a target price of $19 per share, implying upside of about 36% relative to the IPO price of $14 per share. At the same time, he stressed that his target is contingent largely on revenue dynamics: if the top line slows more than expected, the share price may come under pressure.

Pattern’s revenue depends heavily on maintaining partnerships with Amazon and other online marketplaces, Bektemirov notes. Any breakdown in these partnerships, or restrictions on the placement of branded products on these platforms, could have a material adverse effect on the company’s business and financial performance.

Inventory management is another critical factor. Failure to accurately forecast customer demand, maintain optimal stock levels, and plan future expenditures could negatively affect operations and financial results, Bektemirov adds.

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Freedom Broker clients will be able to trade Pattern shares before the start of the main U.S. session. Premarket trading will open 2-3 hours early, at 15:30-16:30 Astana time. Investors can participate by selecting the ticker PTRN.US on the Freedom platform.

The AI translation of this story was reviewed by a human editor.