NEW YORK (Reuters) – Express Parent LLC (EXPR.N), a U.S. clothing company, and Roadrunner Transportation Systems Inc (RRTS.N), a transportation logistics company, fell in their market debuts on Thursday.
Express shares opened flat with their initial public offering price, then traded down.
The shares opened at $17 and dipped as low as $16.50 before recovering slightly to close down 1.5 percent at $16.75 on the New York Stock Exchange. The Columbus, Ohio-based company on Wednesday sold 16 million shares for $17 each, raising about $272 million. It had planned to sell shares for between $18 and $20 each.
Roadrunner shares opened 1.8 percent below their IPO price at $13.75. The shares fell as low as $13.60 before closing at $13.75, matching their opening price. The company on Wednesday sold 10.6 million shares for $14 each, raising about $148.41 million. It had planned to sell shares for between $14 and $16.
Roadrunner provides logistical support for truck, intermodal and air transport primarily in North America but also provides international air freight logistics. Its services include pricing, contract management and tracking.
Express is the No. 6 specialty retailer in the United States, according to its prospectus. As of Jan. 30, it had 573 stores selling clothing aimed primarily at women in their 20s.
Private equity firm Golden Gate Capital bought 75 percent of Express in 2007 when its parent company, Limited Brands Inc (LTD.N), sought to exit the volatile apparel industry.
Golden Gate planned to sell a portion of its shares in the offering, but expected to retain a greater than 50 percent stake in the company, according to the most recent prospectus.
Express net sales fell 0.9 percent to $1.72 billion in the year ended Jan. 30. The company swung to a $75.31 million profit from a $29.04 million loss. Comparable store sales — outlets open at least a year — slipped 6 percent compared with a 3 percent dip a year earlier.
Express said it would use proceeds from the offering to pay off loans, interest, and fees and expenses associated with the IPO.
Roadrunner is backed by funds affiliated with private equity firms Thayer Hidden Creek, Eos Partners and American Capital. The company’s revenue fell 16.1 percent to $450.35 million in 2009. The company narrowed its net loss attributable to common stockholders by 53.5 percent to $1.78 million.
Roadrunner said it would use proceeds from the offering to pay off debt, loans and interest
Underwriters on the Express IPO were led by Bank of America Merrill Lynch and Goldman, Sachs & Co. Underwriters on the Roadrunner IPO were Robert W. Baird & Co, BB&T Capital Markets and Stifel Nicolaus. (Reporting by Clare Baldwin; Editing by Derek Caney, Matthew Lewis, Leslie Gevirtz)