Shares of Sportsman's Warehouse Holdings, Inc. began trading at $9.50 a share Thursday on the NASDAQ, or below the $11 to $13 range the company was shooting for with the initial public offering.

Sportsman's Warehouse sold 8.33 million shares, which trade under the symbol SPWH, while Seidler Equity Partners III, L.P., which initially invested in the company in 2007 prior to the retailers Chapter 11 bankruptcy, sold 4.17 million shares.


Out of 11 IPOs expected to price last week, nice priced below their expected ranges, according to Renaissance Capital. The only two to price within range were Chinese companies.


SPWH expects to raise approximately $70.3 million from the IPO after deducting underwriting discounts and commissions and other offering costs.  SPWH and Seidler have granted the underwriters a 30-day option to purchase up to an additional 468,750 shares from Sportsman's and an additional 1.41 million shares from Seidler. SPWH expects to close the IPO on or around April 23, at which time Seidler will still control 52 to 56 percent of the company’s outstanding common stock depending on how much stock underwriters acquire.

SPWH intends to use its net proceeds to repay amounts outstanding under its term loans. The Midvale, UT company has grown its store count an average of 42.3 percent over the last three years and now operates 49 stores across 18 states. In the fiscal year ended Feb. 1, it reported gross margin of 32.2 percent on sales of $643.2 million, up 22 percent from a year earlier.


The IPO was managed by Credit Suisse and Goldman, Sachs & Co. as joint book-running managers. Robert W. Baird & Co. Incorporated, William Blair & Company, L.L.C., Piper Jaffray & Co., Wells Fargo Securities and D.A. Davidson & Co. are acting as co-managers.