NEW YORK (CBS.MW) – Dick’s Sporting Goods set toned-down terms in its $150 million initial public offering as the retailer gets ready to step out onto the field the week of Sept. 30.
The Pittsburgh-based operator of 134 stores in 24 states plans to offer 8.4 million shares at an estimated price of $14 to $18 a share.
At the top end of the range, the company will raise $151.2 million, lower than the ceiling of $200 million set in its IPO filing on July 17.
It plans to trade on the NYSE under the ticker, “DKS.”
and Goldman Sachs
are underwriting the deal.
Vulcan Ventures, the investment firm owned by Microsoft founder Paul Allen, holds a 12 percent stake in Dick’s. Bessemer Venture Partners, Fourcar B.V. and Oak Investment Partners also own shares in the company.
Shareholders are selling 4.2 million shares and the company is selling 4.2 million.
Dick’s rang up net income of $23.5 million on revenue of $1.1 billion in fiscal 2001, compared to $8.6 million in net income and revenue of $893.4 million in the year-ago period.
Although the retailing sector has been challenged by the recession, Dick’s said in its IPO filing that it’s demonstrated the ability to “consistently deliver profitable growth.”
For the four-year period ending Feb. 2, Dick’s net sales, operating income and net income have grown at a compounded annual growth rate of 20 percent, 39 percent and 55 percent respectively.
“We believe that our compelling new store economics and our successful track record of opening new stores provides us with a strong foundation for continued growth through new store openings,” Dick’s said.
The company plans to open 15 stores in fiscal 2002.
High up on the list of challenges to Dick’s are its many competitors such as The Sports Authority
Galyan’s Trading Co.
Big 5 Sporting Goods
and Hibbett Sporting Goods
Even discount giants such as Wal-Mart
compete with the company.
“Pressure from our competitors could require us to reduce our prices or increase our spending for advertising and promotion,” the company said.
Galyan’s debuted in July of last year at $19 per share and is now trading at about $11 per share.
View more information: https://www.marketwatch.com/story/dicks-sports-goods-gets-ready-to-step-onto-the-field