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The shares of BJ Wholesale Club Holdings Inc. were opened on Thursday above their initial public offer price, with the wholesaler of members returning to the public markets after seven years as a company private.
the IPO price of $ 17 per share. Listed on the New York Stock Exchange under the symbol "BJ", the stock price soared to $ 23.01 in the early trading minutes and was trading recently at $ 21.28.
BJ filed the IPO last month, a relatively rare move The company has offered 37.5 million shares under the offer and expected the IPO will be between $ 15 and $ 17 per share. Earlier this week, the company said it was expecting net proceeds of $ 563 million, based on the mid-range point of $ 16 per share. It has not yet revealed the final figure.
BJ said that he would use the proceeds to pay off his debt. The company posts more than $ 2.7 billion in fair value of total debt as of May 5, according to the latest regulatory statements.
The wholesaler was private in 2011 by private equity firms Leonard Green & Partners LP and CVC Capital Partners Ltd. a fully cash transaction valued at approximately $ 2.8 billion. CVC and Leonard Green will retain a stake of approximately 69% once the deal is completed.
Founded in 1984, BJ's owns 215 warehouse stores and 134 service stations in 16 states, and has a smaller footprint than its rivals.
Costco Wholesale
Corp.
and
Walmart
Inc. & # 39; s
Sam. Costco's club operates around 750 warehouses worldwide, while Sam's Club has about 600 warehouses.
The company, based in Westborough, Massachusetts, has approximately 26,500 employees and achieves a sales figure of Annual business of $ 12.75 billion. During its last year, which ended in February, the company made a profit of $ 50.3 million.
Writing to Aisha Al-Muslim at [email protected]
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