Restoration Hardware Re-IPOs
For the first time since going private back in 2008, Restoration Hardware (NYS: RH) is a public company again. On Friday, the Corte Madera, Calif., furniture retailer re-IPO'ed at a share price of $24. This price quickly rocketed to $32.05 by the time of its first trade and then continued to climb to a closing price of $31.01 per share, up 30%. Selling 5.16 million shares, the company raised $124 million in its debut on the New York Stock Exchange.
In contrast to its condition in the year it went private, the Restoration Hardware that arrived on the NYSE Friday is a profitable company, and one that's grown its revenues in the double digits over the past 10 quarters. The company has continued to bleed cash, however, with total free cash flow for the past 12 months amounting to negative $55.6 million. Hence the need to raise cash via IPO.
Restoration Hardware operates 73 retail stores, and an additional 12 outlet stores in the U.S. and Canada.
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