Restoration Hardware Shares Soar in Market Debut
Restoration Hardware's shares umped nearly 30 percent in their market debut on the New York Stock Exchange on Friday after the stock priced at the high end of its range.
The company priced its 5.2 million shares at $24, raising $123.9 million. During the day, the company's stock rose as much as 38 percent before paring some gains to close about 30 percent higher at $31.10 a share.
Shares are trading under the ticker symbol "RH." It was backed by private equity firms Catterton Partners and Tower Three Partners LLC and opened trading at $32.05.
The debut comes amid signs that U.S. consumers are becoming increasingly optimistic about their situation, boosting a report measuring consumer confidence to its highest level in more than four years.
The company, which operates 73 retail stores in the U.S. and Canada, compete with retailers including Williams Sonoma, which operates the Pottery Barn and West Elm chains, Ethan Allen Interiors and Pier 1 Imports.
"We've got big plans and ambitious plans," said Gary Friedman, the company's creator. "The ability to raise some capital to start to transform and move the company to the next stage of its growth, it was important for us to access the capital markets."
In mid-August, Friedman resigned from his position as co-CEO after an internal investigation began into a relationship he had with a female employee.
The company's IPO is one of only a few this week after Hurricane Sandy forced U.S. stock exchanges to close on Monday and Tuesday and pushed back the IPO schedule.
— Reuters contributed to this article