Daily News - Shares of GNC rise in market debut (AP) Daily Business News
The stock of vitamin and nutritional supplement retailer GNC rose in its market debut after the company's initial public offering raised $360 million.
GNC Holdings Inc. sold 22.5 million shares for $16 apiece. The company, based in Pittsburgh, had expected to sell the shares for $15 to $17 each.
GNC's shares, trading under the "GNC" symbol on the New York Stock Exchange, rose 50 cents, or 3.1 percent, to $16.50 by midday trading.
It is the largest nutritional supplements chain in the U.S. GNC sells through more than 7,200 retail locations worldwide and its website.
GNC is the latest private equity-backed company to go public following record capital raises from hospital operator HCA, pipeline company Kinder Morgan and ratings and research provider Nielsen, earlier this year. It is also one of the few retailers to go public recently.
GNC tried unsuccessfully to go public in 2004 and 2006 when it was owned by investment firm Apollo Global Management LLC. Apollo sold the business in 2007 for $1.65 billion to investment firm Ares Management LLC and the private equity arm of the Ontario Teachers' Pension Plan, a large Canadian institutional investor.
GNC modernized its brand, expanded its product lines and made other investments. The company earned $1.82 billion in revenue last year, up from $1.71 billion in 2009. Net income rose 39 percent to $96.6 million from $69.5 million in the prior year.
GNC is banking on growing demand from customers focused on health and wellness, the needs of an aging population and overseas growth.
It faces competition from companies such as Vitamin Shoppe Inc., which raised $154.6 million in its IPO in 2009. The company's shares launched at $17 each then and are trading near $34 as of Friday.
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