Dollar General IPO Set At $21 Per Share

SARAH SKIDMORE

PORTLAND, Ore. (AP) — Investors looking to have a hand in the future of frugal will watch shares of discount retailer Dollar General, which will begin trading Friday now that the company has priced its initial public offering.

Dollar General late Thursday priced its offering of 34.1 million shares at $21 each — the low end of its proposed range of $21 to $23 per share.

The company, based in Goodlettsville, Tenn., is one of the nation's largest discount chains with more than 8,500 stores in 35 states. The company sells everything from food to home decor — usually for less than $10 — at its no-frills stores.

During the recession, discounters like Dollar General have thrived as shoppers look to them for low-cost deals on a variety of items. The offering was highly anticipated, given the company's recent turnaround, size and well-known name.

"As soon as Dollar General was filed, there was instant buzz," said Scott Sweet, senior managing partner at IPO Boutique.

Dollar General was publicly traded from 1968 until 2007, when it was purchased for $6.9 billion by an investment group that included affiliates of private-equity firm Kohlberg Kravis Roberts & Co. and investment bank Goldman Sachs, among others.