NEW YORK (TheStreet) -- The Container Store (TCS) exploded out of the gate after its 12.5-million-share initial public offering. Shares, initially priced at $18 a share, blasted to $35.34, a 96.3% gain mere minutes after it floated.
The retailer, which stocks organizational and storage merchandise, raised its initial IPO range to between $17 to $18 a share from $14 to $16 on Wednesday after gauging strong investor demand for the stock.
In its S-1 filing, the Texas-based company said it generated $706 million worth of net sales in the year ended March 2, and has seen 13 consecutive quarters of positive same-store sales growth across its 63 stores nationwide. Over the three fiscal years since February 2010, net losses have narrowed to $130,000 in the most recent fiscal year from $45 million in fiscal year ended February 2011.
To the future, the company said it hopes to expand its current U.S. store footprint to at least 300 stores and has already seen substantial growth in website and call center sales, up 84% since fiscal year 2008, including 25% growth in fiscal year 2012 alone.
The joint book-runners for the offering are JPMorgan (JPM), Barclays (BCS), Credit Suisse (CS), Morgan Stanley (MS), Bank of America (BAC), Wells Fargo (WFC) and Jeffries, while Guggenheim Securities is acting as co-manager.
Written by Keris Alison Lahiff.