Dave & Buster’s Rises in Trading Debut
By William Alden
DealBook
New York Times October 10, 2014 12:55 pm
Investors extended a warm welcome to Dave & Buster’s on Friday as the restaurant and arcade chain began a new phase as a publicly traded company.
The company’s shares began trading at $17 a share on Friday morning, a dollar above their initial public offering price that was set Thursday evening. The stock, which is trading on Nasdaq under the ticker symbol PLAY, rose as high as $18.43 a share during the day.
Still, the stock’s initial performance was flattered by the relatively low I.P.O. price, at the bottom of an expected range of $16 to $18.
At the $16 price, the company raised $94.1 million and achieved a valuation of $625.4 million. It plans to use the proceeds to reduce its debt, which stood at $529 million as of Aug. 3.
The successful debut most likely comes as a relief for Oak Hill Capital Partners, the private equity firm that bought Dave & Buster’s for $570 million in 2010 and will continue to be its majority shareholder. The restaurant chain made an earlier attempt to go public in 2012, but those plans were scrapped because of “continued volatility” in the markets, the company said at the time.
The markets this week were far from tranquil, creating a difficult environment for the company’s debut.
Founded in Dallas in 1982, Dave & Buster’s now operates 70 stores in the United States and Canada. It reported a $2.2 million profit in its fiscal year that ended in February.
Executives of Dave & Buster's celebrate its stock debut.Credit The Nasdaq OMX Group, via Globe Newswire
_______________
dealbook.nytimes.com |
