Container Store Doubles in Debut After IPO Prices at Top EndLeslie Picker
Container Store Group Inc., a retailer of storage and organization products, surged in its debut after raising $225 million in a U.S. initial public offering by pricing the shares at the top of an increased range.
The Coppell, Texas-based retailer sold 12.5 million shares for $18 each, according to a statement yesterday, equivalent to a 27 percent stake. It offered them for $17 to $18, after raising the range from $14 to $16 apiece on Oct. 30. Container Store more than doubled to $36.20 at 4 p.m. in New York, giving it a market value of about $1.7 billion. The shares are listed on the New York Stock Exchange under the symbol TCS.
Container Store, the only national retailer focused on storage and organization products, posted more than $700 million in sales in the year ended March 2, according to a regulatory filing. The IPO is the second-largest for a retailer in the U.S. this year, after Bain Capital LLC’s Burlington Stores Inc. raised $226.7 million earlier this month, according to data compiled by Bloomberg.
Container Store counts William “Kip” Tindell as chief executive officer and his wife, Sharon, as chief merchandising officer. The company’s board members include Walter Robb, the co-CEO of Whole Foods Market Inc., CEO of Union Square Hospitality Group Danny Meyer, and Per von Mentzer, the CEO of Elfa, the Swedish shelving unit of Container Store.
Leonard Green & Partners LP, the Los Angeles-based private-equity firm that bought Container Store in 2007 for an undisclosed amount, will hold about 60 percent of the retailer’s common shares after the offering, the prospectus shows.
Container Store’s net loss narrowed to $130,000 in the year to March 2 as sales increased 12 percent, according to the filing.
Burlington Stores, known commonly under its coat factory brand, rose 47 percent on its first day of trading Oct. 2. The shares are up almost 60 percent since the IPO.
JPMorgan Chase & Co., Barclays Plc. and Credit Suisse Group AG led Container Store’s offering.