AEA-Backed At Home Group Aims to Raise $138.7 Million in IPO

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  • Home decor company offering shares for $14 to $16 apiece
  • AEA and Starr to maintain majority control of common stock

At Home Group Inc., a Texas-based home decor company, is aiming to raise as much as $138.7 million in an initial public offering.

The company, which is backed by AEA Investors LP and affiliates of Starr Investment Holdings LLC, is offering 8.7 million shares from $14 to $16 apiece, according to a filing with the U.S. Securities and Exchange Commission on Monday.

Including an overallotment of an additional 1.3 million shares to underwriters, At Home Group Inc. could raise as much as $159.5 million. The sponsors will retain control of about 85 percent of the company after the listing.

At Home posted net income of $3.6 million in fiscal year ended Jan. 30 2016, up from a net loss of $436,000 a year earlier. Sales climbed 25 percent to $622 million in fiscal 2016.

Bank of America Corp. and Goldman Sachs Group Inc. are leading the offering. Shares will be listed on the New York Stock Exchange under the ticker HOME.

AEA Investors acquired At Home -- then known as Garden Ridge -- in 2011. The company, which sells home decor in warehouses and other large spaces, has expanded by renovating vacated retail spaces. In recent years it added stores in locations closed by J.C. Penney & Co., Sam’s Club, Sears Holding Corp., and Kmart Corp. The company had 79 stores as of April 30, according to its filing.