Party City Holdco Inc. gained in its trading debut after the largest U.S. party-supplies retailer raised about $372 million in an initial public offering.
The stock gained 21 percent to $20.50 after Party City sold 21.9 million shares for $17 apiece. Party City’s private-equity owners, Thomas H. Lee Partners LP and Advent International Corp., didn’t sell any stock in the IPO. The company plans to use the proceeds for a $30.7 million termination fee to its backers and to repay debt.
Party City has been trying to go public since 2011. The Elmsford, New York-based company initially filed a prospectus four years ago, and delayed the deal amid a stock-market slump. In 2012, Thomas H. Lee agreed to buy a majority stake from Party City, which then refiled for an IPO in January 2014.
Now, with U.S. benchmarks near record highs and projections for a pick-up in consumer spending, Party City is finally making its debut.
The company offers party supplies from costumes to pinatas. Last year, it posted $2.27 billion in revenue, up 11 percent from 2013, regulatory filings show. Party City will have $1.9 billion in total debt following the IPO.
Thomas H. Lee will own 56 percent of Party City after the offering, filings show, while Advent will hold a 19 percent stake.
Goldman Sachs Group Inc., which indirectly owns 11 percent of Party City’s common stock, is managing the offering, with Bank of America Corp. The stock is listed on the New York Stock Exchange under the symbol PRTY.