Tilly’s, Inc. announced the pricing of its initial public offering of 8,000,000 shares of Class A common stock at $15.50 per share, or $2 above the maximum price it forecast April 23.


Tilly’s is offering 7,600,000 shares and selling stockholders are offering 400,000 shares. The shares are listed on the New York Stock Exchange under the symbol “TLYS” and began trading Friday, May 4. The stock was trading in the $17.50 range as of 11:00AM.

 

The underwriters have a 30-day option to purchase up to an additional 1,200,000 shares from the selling stockholders to cover overallotments, if any. Tilly’s will not receive any proceeds from the sale of shares by the selling stockholders.

Tilly’s expects to receive proceeds, net of the underwriting discounts and offering expenses, of approximately $107.6 million. Tilly’s intends to use $84.0 million to pay in full the principal amount of notes held by existing stockholders representing the final undistributed “S” corporation earnings of World of Jeans & Tops, a wholly-owned subsidiary. The remaining proceeds will be used for working capital and general corporate purposes.


Goldman, Sachs & Co., BofA Merrill Lynch, and Piper Jaffray & Co. acted as book-running managers, and William Blair & Company and Stifel Nicolaus Weisel acted as co-managers for this offering. Latham & Watkins LLP served as legal counsel to Tilly’s in connection with the offering.