NEW YORK (MarketWatch) – Volcom vaulted more than 40% in its stock market debut as shares of the action sports brands erupted on Wall Street Thursday.
opened at $26.01, well above their $19 a share IPO price. The stock changed hands at $27.35 in the open market as buyers lined up for the well-known brand among the skate-and-surf crowd.
The Costa Mesa, Calif. maker of clothing, accessories and related products raised $89 million by offering 4.7 million shares with Wachovia and D.A. Davidson.
The IPO was bid up above the estimated price range of $15-$17 in signs of a strong debut.
It’s the third IPO of the week to price above its range, after retailer DSW Inc.
kicked off on Wednesday.
Founded in 1991 by Richard Woolcott and Tucker Hall in Orange County, California, Volcom touts itself as “one of the leading boardsport brands in the world” with revenue growth to $113 million in 2004, up from $37 million in 2000.
The company turned in a 2004 profit of $24.4 million, up from $1.5 million in 2000.
Volcom followed the successful IPO of action sports store chain Zumiez
which has seen its stock price nearly double since its IPO last month. Shares of Zumiez fell $1.42 on Thursday.
The IPO market is showing signs of vigor with a flurry of deals ahead of the July 4 holiday weekend.
Also on Thursday, Silicon Motion Technology Corp.
a Taiwan-based maker of chips, priced its American depositary shares at $10.50, in the middle of the estimated range of $9.50-$11.50 a share.
The stock opened at $10.60 and ended the day at $10.50.
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