Francesca’s Holdings Raises $170 Million Pricing IPO Above Range

Francesca’s Holdings Corp., the operator of women’s fashion stores, raised $170 million in its initial public offering, pricing its shares above the marketed range.

The Houston-based company sold 10 million shares at $17 each, according to data compiled by Bloomberg, after offering them for $14 to $16 apiece. Proceeds will be used to repay loans, according to a regulatory filing. The stock will trade on the Nasdaq Stock Market under the symbol FRAN.

Francesca’s, controlled by CCMP Capital Advisors LLC, joined Dunkin’ Brands Group Inc. in aiming to complete private equity-backed IPOs this month. Buyout firms have completed IPOs from HCA Holdings Inc. and Kinder Morgan Inc. in 2011, the year’s biggest offerings, as the funds sought to raise cash by selling investments in the public market.

CCMP planned to sell 5.7 million of the shares in the offering, trimming its stake to 65 percent from 84 percent, according to the filing with the U.S. Securities and Exchange Commission. The New York-based firm bought a controlling interest in the retailer in February 2010.

Francesca’s completed its initial offering after more than doubling net income to $3.9 million in the thirteen weeks ended April 30 compared with a year earlier, according to the filing. Net sales rose 62 percent to $41.3 million.

The company plans to more than triple the number of its stores in the U.S. in the next seven to ten years, to 900 from the 249 it had at the end of April, according to the IPO prospectus.

Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co (JPM) and Jefferies Group Inc. (JEF) led the offering.

To contact the reporter on this story: Lee Spears in New York at lspears3@bloomberg.net.

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net

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