Zumiez hit the public market on Friday with an $18.00 offering price, a nice bump from initial plans for a $15 to $17 offering. ZUMZ shares opened on the Nasdaq exchange at $20.55 and never looked back, closing the day at $24.87, or an increase of 38.2% over the offering price.
The company sold 1.875 million shares and pocketed $33.8 million in the offering to “fund new store openings and growth, for working capital and for other general corporate purposes.”
Existing shareholders, including co-founder and chairman Thomas Campion, sold off an additional 1.25 million shares netting them another $22.5 million in the offering. Campion, who sold off 250,000 of his approximately 4.1 million shares, netted $4.5 million on the day and saw his paper wealth jump another $26.3 million by the end of the day. Campion still maintains a 29% stake in the company.
Brentwood Private Equity III LLC, which sold roughly 892,000 of its 4.3 million shares in the offering, netted $16.1 million in the debut and saw its paper wealth increase $23.1 million on the day. Nice return.
The deal was being underwritten by Wachovia Securities, Piper Jaffray and William Blair & Co.
ZUMZ posted $7.3 million in net income in 2004, a 62.4% increase versus the prior year, while retail sales increased 30.3% to $153.6 million. Comp store sales were up 9.6% for the year.
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