IPO Watch: Rue21 Preps for Offering

NEW YORK (TheStreet) -- There will soon be a new teen retailer on the trading block.

Rue21 is planning on raising $115 million by offering about 6.8 million shares, priced at $16 to $18 a share, in its initial public offering.

The retailer, which will compete with companies like American Eagle Outfitters(AEO), Abercrombie & Fitch (ANF)and Aeropostale(ARO), will offer about 1.7 million shares, while selling stockholders will offer 5.1 million shares.

The company will not receive any proceeds from shares offered by selling stockholders.

Rue21 expects to be listed on the Nasdaq Global Select Market under the ticker "RUE."

The company has more than 500 stores in 43 states and targets teen boys and girls with trendy, value-priced apparel. It generated $450 million in sales over the last 12 months.

-- Reported by Jeanine Poggi in New York

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