Burlington Stores' (NYSE: BURL) stock soared 47 percent to $25.01 on Wednesday (October 2), after the off-price retail chain raised $226.7 million in its initial public offering (IPO).
Burlington sold 13.3 million shares for $17 each, which is above the marketed range of $14 to $16. Bain Capital acquired Burlington Stores, along with Toys "R" Us, Michaels Stores and Guitar Center, between 2004 to 2007.
"It's the perfect time for Bain and Burlington to do an IPO. Retail is still turning the wrong way, but off-price retail is the only area that's turning the right way, and Burlington can participate in that," Burt Flickinger, managing director of consulting firm Strategic Resource Group, told Bloomberg.
Burlington's sales have risen for each of the last three years, according to its IPO filing. In fact, its revenue soared nearly 10 percent to $2 billion in the six months ending August 3.
"We have put a lot of things in place like changing the look of our stores and being more of an off-price retailer than we were back in 2008. We have been working really hard on transforming the company," Burlington CEO Thomas Kingsbury told Bloomberg.
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This Bloomberg article
Burlington Coat Factory Joins the IPO Rush with $175 Million Target