Five Below Inc. plans to raise $150 million in an initial public offering of its common stock.
The retailer, which targets preteens and teenagers, did not disclose in a Wednesday filing with the Securities & Exchange Commission how many shares will be in the offering. It also did not specify how many shares it will offer and how many shares selling stockholders will offer.
The underwriters will be given an option to buy additional shares to cover any excess demand.
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Five Below won't receive any proceeds from the shares sold by selling stockholders. The retailer anticipates using its net proceeds to pay offering-related expenses and to pay back outstanding debt under a new term loan facility. Any remaining funds will be used for general corporate purposes, including working capital and capital expenditures.
The Philadelphia company said in its regulatory filing that all of its products, which include flip flops, sunglasses and nail polish, are priced at $5 or less. Five Below, which was started by Zany Brainy masterminds David Schlessinger and Tom Vellios in 2002, had 192 stores in 16 states in 16 states at the end of fiscal 2011. The retailer plans to open about 50 stores in 2012 and anticipates that it can operate more than 2,000 stores over time.
Five Below's revenue climbed to $297.1 million in 2011 from $197.2 million in the prior-year period. Net income available to common shareholders was $56,000, compared with a loss of $813,000 a year earlier.
Five Below plans to list on the Nasdaq Global Select Market. It has not yet provided a ticker symbol. Underwriters include Goldman Sachs, Barclays and Jefferies.
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