Golf Galaxy Inc. is set to be the first golf specialty retailer to hit the public market after last week setting the price range for its initial public offering between $11 and $13 per share. The retailer, which is expected to debut on the NASDAQ exchange under the symbol GGXY, hopes to raise about $36 million by selling three million shares at the mid-range price. Company insiders will pocket another $4.0 million by selling 333,000 shares.
A big chunk of the proceeds ($19 million) will go to pay accrued dividends to preferred shareholders. The balance is expected to be used to open stores and for general corporate purposes, including acquisitions.
Piper Jaffray, William Blair & Co., A.G. Edwards and Wedbush Morgan Securities as underwriters and will have an option to buy 500,000 more shares to cover over-allotments.