Toys R Us Readies for an IPO

Toys R Us Readies for an IPO

As per a regulatory filing, Toys R Us on Friday filed for an Initial Public Offering worth up to $800 million. The Company is backed by private equity. It stressed that the money will largely be utilized to repay debt. It did not confirm the amount of shares it plans to sell or even provide an expected price range.

It has been a long time since an IPO is being expected from the Company. Experts had confirmed that it may be coming with an IPO soon. It posted sales of $13.6 billion for the fiscal year ended January 2010. Its profit for the period was 304 million, up 44% from the year-ago period.

The Company was taken over by Kohlberg Kravis Roberts & Co, Bain Capital and Vornado Realty Trust (VNO. N) in 2005 for $6.6 billion.

The underwriters for the issue are Goldman Sachs, JPMorgan, BofA Merrill Lynch, Credit Suisse, Deutsche Bank Securities, Citi and Wells Fargo Securities. It is expected to trade on the New York Stock Exchange under the symbol TOYS.

It will offload a minority stake valued at around $1 billion. The owners of the Company refused to answer any questions from the reporters who sought more details about the IPO.

Experts feel that the Company has the potential to do very well and it has strong cash flow and dividends.