Aeropostale IPO Takes Flight
Investors fawned over teen fashion house Aeropostale's (ARO) initial stock offering Thursday.
The deal was priced Wednesday at $18, higher than the $15-$17 range underwriters had initially set. And when trading began at midmorning Thursday, the shares rocketed, opening at $24.90. In recent action the shares were trading at $24.71.
The New York-based apparel chain, once part of Federated Department Stores' (FD) Macy's chain, raised $225 million in the offering, but only a small part of that went into the company's coffers. About $191 million went to a group of investors, including Bear Stearns, that financed the buyout of Aeropostale in 1998. The company took in about $33.75 million, money it will use to pay off preferred shareholders and fund expansion plans.
The company has
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