Playboy says it's selling 4 million shares of stock after gaining 285% since SPAC IPO

• Playboy's parent said it has commenced an underwritten public offering of 4 million shares of its common stock.
• PLBY Group's capital raise comes as its stock has gained roughly 285% since its February public debut.
• Playboy went private in 2011 but reemerged with a focus on lifestyle and sexual health.

Playboy's parent PLBY Group announced Monday it has commenced an underwritten public offering of 4 million shares of its common stock. Shares of PLBY fell Tuesday morning but recouped losses and are set to close in the green.

The adult lifestyle company intends to use the net proceeds from the proposed offering to fund "future growth, including potential future acquisitions, and for working capital and general corporate purposes."

Playboy's capital raise comes as its stock price skyrockets. PLBY is up roughly 285% since merging with a special purpose acquisition company in February.

Canaccord Genuity and Stifel are acting as joint book-running managers for the offering. Roth Capital Partners, Chardan, Craig-Hallum and Loop Capital Markets are acting as co-managers for the proposed offering, the company said in a filing.

PLBY Group plans to grant the underwriters a 30-day option to purchase up to an additional 600,000 shares of stock at the public offering price, less underwriting discounts and commissions.

Playboy went private in 2011 amid declining ad sales but rejoined public markets this year with a focus on rebranding its adult entertainment focus to lifestyle and sexual health. In April, Playboy announced a partnership with online NFT marketplace Nifty Gateway.