Spanish clothing retailer Tendam is contemplating an IPO after its recurring ebitda rose 8.2% in the first half of its financial year, the company's chairman and CEO said Thursday.

The company's recent results and credit rating improvements mean that "Tendam and its shareholders are evaluating possible strategic alternatives to take the company to its next phase of growth, including the possibility of a public offering of its shares on a regulated market," Jaume Miquel said in a statement.

Private equity firms CVC Capital Partners and PAI Partners each own almost half of Spain's third-largest fashion retailer. They bought Tendam in 2006 and increased their stakes in 2017 in a deal that valued the company at €1 billion ($1.1 billion) at the time.

Tendam, which ranks behind Inditex, which owns Zara, and Mango in terms of sales, posted revenues of €606 million in the first half of the year, up 5% from the same period in 2022.

The company, which owns brands such as Cortefiel and Pedro del Hierro, posted an adjusted gross operating profit (ebitda) of 151 million euros, 8.2% more than in the same period of 2022. Its gross margin was 63.3%.

Mexico was one of its best performing markets in the first half of 2023, the company said.

In October, Tendam announced the early redemption of €190 million of its €300 million bonds maturing in 2028.

CVC and PAI have hired Rothschild as financial advisor to explore various options, including a dual-track process, under which a company conducts an IPO with both an underwriting of new shares (IPO) and a sale (IPO) at the same time, Spanish daily Expansión said this month, citing sources with knowledge of the matter. The companies declined to comment at the time.

Tendam was delisted in 2006.

(1 U.S. dollar = 0.9480 euros)

(Reporting by Corina Pons; writing by David Latona; editing by Aislinn Laing and Mark Potter; Spanish editing by Tomás Cobos)