Bain Capital’s Burlington Raised $226.7 Million in the First Public Offering
The Burlington Stores Inc. (BURL: US) has raised $226.7 million in the first initial public offering and surged in its debut from a brick-and-mortar retailer acquired by Bain Capital LLC during the buyout boom.
At the close in New York, the stock jumped 47 percent to $25.01. The retailer known for its Burlington Coat Factory stores sold 13.3 million shares for $17 each, above the marketed range of $14 to $16.
The Bain Capital did not sell any of its 54.4 million shares in the IPO, in fact, it acquired Burlington, Toys "R" Us Inc., Michaels Stores Inc. and Guitar Center Inc. in deals valued at $17 billion between 2004 and 2007.
The sales growth at chain stores was hit by the shift to online shopping as exiting these investments has proven a challenge.
Michaels has yet to proceed with an IPO that it filed for in March 2012. Also, Bain Capital and its partners tried to take Toys "R" Us public in 2010.
Burt Flickinger, managing director at Strategic Resource Group, a consumer-industry consulting firm, who works with Burlington's suppliers, said, "It's the perfect time for Bain and Burlington to do an IPO".
He also said that that 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.