This analysis of Gordmans Stores (
) was provided to
in advance of its Wednesday, August 4, IPO. The company sold
5.4 million shares for $11 each, raising about $58.9 million. It
had planned to sell shares for $13 to $15 each.
Gordmans Stores plans on offering 6.2 million shares (assuming
over-allotments are exercised) at a range of $13-$15. Insiders will
be selling 3 million shares in the deal. Piper Jaffray and Wells
Fargo are leading the deal, Baird and Stifel co-managing. Post-IPO
GMAN will have 18.7 million shares outstanding for a market cap of
$262 million on a pricing of $14. IPO proceeds will be used for
debt repayment and general corporate purposes.
Sun Capital Partners will own 67% of GMAN post-IPO. Sun Capital
acquired a 100% stake in GMAN in 9/08 for total considerations of
just $55.7 million. Of this, $32.5 million was debt on the back of
GMAN. That debt will be paid off on IPO.
'Gordmans is an everyday low price retailer featuring a large
selection of the latest brands, fashions and styles at up to 60%
off department and specialty store prices every day in a fun,
FY '09 (ending 1/30/10)
FY '10 (ending 1/31/11)
- GMAN is expected to grow 14% by my conservative 2010
estimates, while the other discounters are growing 4%-8%;
- GMAN only has 68 stores in existence, leaving a lot more room
for store growth than those other discounters.
This is a solid retailer coming public attractively priced.
: At date of this post [8/20], tradingipos.com is long GMAN.
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