(Reuters) - The owner of U.S. deep discount retailer Ollie’s Bargain Outlet – known for the signature catch phrase “good stuff cheap” – filed on Monday for an initial public offering, hoping to replicate the success of other retailers this year.
Ollie’s Bargain Outlet Holdings Inc operates 181 stores across the United States, selling excess inventory and salvage merchandise like housewares, sporting goods and toys from manufacturers who make too much of an item or change their packaging.
The Harrisburg, Pennsylvania-based company’s prices are up to 70 percent below those at department and specialty stores and up to 20-50 percent less than those at mass market retailers.
Ollie’s net income rose 37.7 percent to $26.9 million in fiscal 2014, while revenue increased 18 percent to $638 million, the company said in a preliminary prospectus filed with the U.S Securities and Exchange Commission.
Chief Executive Officer Mark Butler and private equity firm CCMP Capital Advisors LLC acquired their stake in Ollie’s in 2012 in a deal that valued the company at about $700 million, according to Moody’s. The filing did not mention the size of their stake.
The company, co-founded by Butler in 1982, expects to open 25 to 30 new stores in fiscal 2015 and sees the potential for more than 950 locations across the country.
Ollie’s IPO filing follows the successful market debuts of retailers such as party goods chain Party City Holdco Inc and crafts marketplace Etsy Inc earlier this year.
Party City’s shares rose roughly 23 percent in their debut on April 16, while Etsy’s shares more than doubled in their debut on the same day.
Through Friday’s close, Party City’s shares have gained 29 percent since their debut, while Etsy’s have given up most of their gains to end 4 percent higher.
Ollie’s said its IPO will be underwritten by J.P. Morgan, Jefferies, Bank of America Merrill Lynch, Credit Suisse and Piper Jaffray among others.
The filing included a nominal fundraising target of $150 million, but did not reveal how many shares the company planned to sell or their expected price.
Ollie’s said it plans to list its common stock on the Nasdaq under the symbol “OLLI”.
Reuters reported in February that Ollie’s was preparing for an IPO.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.
Reporting By Sudarshan Varadhan; Editing by Savio D'Souza