UPDATE 1-Restoration Hardware sets IPO price range at $22-$24/share

Tue Oct 23, 2012 8:31am EDT

Oct 23 (Reuters) - Restoration Hardware Holdings Inc expects its initial public offering to raise about $120 million, giving the luxury furniture retailer a market value of around $850 million.

The company said it would offer 5.2 million shares at between $22 and $24 each. The retailer will sell 4.9 million shares and selling stockholders will offer the rest.

Restoration Hardware, known for its antique styles and period designs, will have about 37 million shares outstanding after the offering.

Founded in 1980, Restoration Hardware sells furniture, bath linen, lighting fixtures and other items for homes at its stores, online and through catalogs.

The company's estimated market value, calculated at the mid-point of its expected range, is nearly five times the price paid to take the retailer private in 2008.

Private equity firms Catterton Partners and Tower Three Partners LLC, along with the then CEO Gary Friedman, valued the company at about $175 million when they took it off the market in 2008.

Sears Holdings Corp had also bid for the company.

BofA Merrill Lynch and Goldman Sachs are the lead underwriters to the offering, the company said in a filing with the U.S. Securities and Exchange Commission.

Restoration Hardware expects to use the proceeds from the offering to pay down debt.

The company said it expects to list its shares on the New York Stock Exchange under the symbol 'RH'. Before going private, it traded on the Nasdaq under the ticker symbol 'RSTO.'

Restoration Hardware, which competes with Williams-Sonoma Inc that operates the Pottery Barn and West Elm chains, Ethan Allen Interiors Inc and Pier 1 Imports Inc , operates 73 retail stores in the United States and Canada as of July 2012.

Restoration Hardware had filed for an offering of $150 million last September, though that initial figure is generally used to calculate registration fees.

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