[video] Quick Take: ClubCorp's a Pricey IPO
NEW YORK (TheStreet) -- TheStreet's Debra Borchardt spoke to Francis Gaskins, director of research at Equities.com, about yet another company planning an initial public offering, ClubCorp.
ClubCorp plans to trade under the ticker "MYCC" and is looking to raise $306 million, with shares priced between $16 and $18, Gaskins said. ClubCorp does not have adequate cash flow to be considered a REIT, and top-line sales are only increasing because of price hikes.
He added that if a company coming to the market doesn't have growth or profits, then it's not very interesting. ClubCorp plans to use the proceeds to pay down debt. Borchardt noted that it does have a lot of assets.
Although the company may own a lot of golf courses, 80 of the 102 it operates, it can't sell them without sacrificing revenue, Gaskins said. He concluded that the offering is just a way for the private investors to finance the debt.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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