Skullcandy Inc.s IPO raised $188 million before underwriting expenses, with about half the proceeds going to the company and the other half to selling shareholders. The offering was priced Tuesday night at $20, above its previously projected range of $17 to $19 per share.
The maker of headphones and other audio accessories tuned to the action sports market offered 4.16 million shares, raising $83 million before underwriting costs. Proceeds are expected to be used to repay debt.
Selling shareholders, largely venture capital funds, sold 5.3 million shares, raising $106 million before costs. Certain selling stockholders also gave underwriters a 30-day option to purchase up to an additional 1.42 million shares at the IPO price to cover over-allotments.
Skullcandy President and CEO Jeremy Andrus, a 2011 SGB 40 Under 40 honoree, sold 230,358 shares while Rick Alden, who founded the company in 2003 and is now a director, sold 133,087.
In the first day of trading last Wednesday, the first trade was at $23 but the stock returned to its IPO price by the close of the day. SKUL shares closed the week at $19.69 on Friday, down 1.5 percent from the initial float price.
Skullcandys sales for the first quarter ended March 31 increased 65.9 percent, to $36.0 million. It earned $1.1 million against a loss of $800,000 a year earlier. In 2010, sales grew 35.8 percent to $160.6 million, up from $118.3 million in 2009. It lost $9.7 million in the year due to amounts owed to non-employee stockholders pursuant to the securities purchase and redemption agreement.
