(Reuters) – U.S. discount retailer Gordmans Stores Inc (GMAN.O) priced shares in its initial public offering below the expected range on Wednesday, according to an underwriter.
The company sold 5.4 million shares for $11 each, raising about $58.9 million. It had planned to sell shares for $13 to $15 each.
Omaha, Nebraska-based Gordmans sells clothing and household goods for as much as 60 percent off and had 68 stores as of June 4. Net sales rose 19.7 percent to $111.9 million in the 13 weeks ended May 1 compared with a year earlier. Net income rose 75.5 percent to $6.4 million in the same period.
Gordmans is owned by private equity firm Sun Capital Partners Inc, whose other holdings include Gerber Childrenswear and Limited Stores. Sun Capital expects to own between 67 percent and 71 percent of the company’s common stock after the IPO.
Underwriters were led by Piper Jaffray and Wells Fargo Securities. The shares are expected to begin trading on the Nasdaq on Thursday under the symbol “GMAN.” (Reporting by Clare Baldwin, editing by Leslie Gevirtz)