Toys R Us Filed to Raise About $800 Million

Toys R Us

It has been said that Toys R Us filed to collect about $800 million in a first public offering, in order to mark its come back to the public markets after five years.

Together three firms own 98.2 percent of Toys R Us, but it was not emphasized in the prospectus filed on Friday with the U. S. Securities and Exchange Commission whether they would drop any of their stakes in the final IPO.

It was said by Toys R Us, based in Wayne, New Jersey, that it intends to use the net proceeds of the offering to repay its debt, without getting into specifics, only in the filing.

According to analyst, Toys R Us and its underwriters would have to put sensible prices to the IPO and clarify that it will leave the retailer equipped to contend with other traders.

"Right now, I don't believe there is a good market whatsoever for private equity backed companies. It's hard enough to launch an IPO, but much tougher for a debt-laden company," said Scott Sweet, a Senior Managing Partner with IPO Boutique.

Sweet also said that Toys R Us' long-term debt load of $5.2 billion could be a turn-off for shareholders.

It is said that the filing did not emphasize the amount of shares, or a price range approximation, data that characteristically comes in a while before an IPO’s launch. Neither had it given an estimated timing for the stock flotation.