CORTE MADERA -- Trading opened higher than expected Friday in the new public offering of common stock in RH (NYSE: RH), the new name for luxury home furnishing retailer Restoration Hardware.
The stock opened at $32.05 a share, up from the $24 price in the last amended filing set in the company's IPO. 5.94 million shares were offered. At the close of trading today, the price was $31.10, up $7.10 a share or nearly 30 percent. The day's trading range has been $30.32--$33.15 on volume of 6.84 million shares.
[caption id="attachment_64155" align="alignright" width="350"] Carlos Alberini (center right), chief executive officer, and Gary Friedman (center left), chairman emeritus, creator and curator, of RH celebrate the ringing of the opening bell at the New York Stock Exchange on Friday, the day the stock started trading. (photo credit: Ben Hider, NYSE Euronext)[/caption]
The company recently lowered the maximum amount it wanted to raise in its return to public ownership, setting a target of $142.5 million in an amended filing with the U.S. Securities & Exchange Commission on Oct. 23. RH previously set a target of $150 million in a Sept. 19 amendment.
IPO proceeds would help pay debts from its line of credit with Bank of America N.A., according to the filing.
Home Holdings, LLC, a coalition of private-equity investors, purchased RH in 2008 then in September 2011 filed to take it public again. Home Holdings includes private equity funds Catterton, Tower Three and Glenhill. The coalition will remain the largest holder of common stock.
The company said it does not intend to offer dividends for shareholders.
Bank of America, N.A. and Golden, Sachs & Co., are underwriting the sale.
For the fiscal year ended Jan. 30, RH distributed about 26.1 million catalogs. Net revenue was $958.1 million in that period, up from $625.7 million in 2009.
Under the direction of its new owners, the company reduced the number of stores from 95 in January 2011 to 74 stores and 10 outlets in the U.S. and Canada as of April of this year.