Bob's Discount Furniture pares gains following successful NYSE debut

Investing.com -- Bob's Discount Furniture Inc. shares rose in their trading debut Thursday after the home furnishings retailer raised $331 million in its initial public offering.

The Manchester, Connecticut-based company's stock traded at $18.86 as of 12:52 p.m. in New York, up from its IPO price of $17, giving the company a market value of $2.42 billion based on outstanding shares. The shares had climbed as much as 11% earlier in the session before paring most gains by around 1:30 p.m.

Bob's sold 19.45 million shares in its IPO, which priced at the bottom of its planned $17 to $19 range. Bain Capital-advised investment funds and affiliates were expected to control approximately three-quarters of the outstanding common stock following the offering.

The furniture retailer, which Bain Capital acquired in late 2013 from Apax Partners and KarpReilly, operates more than 200 stores across 26 states. The company plans to expand to over 500 locations by 2035, according to its regulatory filings.

Founded in 1991, Bob's business model focuses on selling furniture at prices below other discount competitors. The company reported adjusted earnings before interest, taxes, depreciation and amortization of $164 million for the nine months ending September 28, with comparable sales growth of nearly 11% during that period.

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