June 29, 2018

BJ's stock rises 41% after IPO

Photo/Grant Welker
BJ's headquarters in Westborough. The bulk retailer had a successful first day back on the market.

BJ's Wholesale Club shares spiked from a $17 debut Thursday on the Westborough retailer's initial public offering, hitting $22 by the close of the day.

On Friday morning, BJ's stock was trading at around $24.

Thursday marked the second time BJ's has traded publicly. The company was taken private in 2011 by CVC Capital Partners in a $2.8-billion deal.

BJ's was valued at roughly the same price based on its closing market price Thursday.

The company is hitting the stock market amid a challenging time for retail, and the IPO had its doubters. Analysts writing for the financial website MarketWatch on Thursday urged investors to stay away because of what they said was the company's debt-heavy capital structure and little sway public shareholders will have because the company's private-equity owners are keeping a 69-percent stake.

BJ's has said it will use proceeds from stock sales to pay down debt incurred when it was taken private.

BJ's reported a net income of $50 million in its 2018 budget year, with $12.5 billion in sales and $259 million in revenue from membership fees.

Comments

Type your comment here:

Today's Poll What is the Blackstone Heritage Corridor's best attribute? <>
ADVERTISEMENTS
Most Popular on Facebook
Copyright 2017 New England Business Media