Restoration Hardware Re-IPOs

For the first time since going private back in 2008, Restoration Hardware (NYSE: RH  ) is a public company again. On Friday, the Corte Madera, Calif., furniture retailer re-IPO'ed at a share price of $24. This price quickly rocketed to $32.05 by the time of its first trade and then continued to climb to a closing price of $31.01 per share, up 30%. Selling 5.16 million shares, the company raised $124 million in its debut on the New York Stock Exchange.

In contrast to its condition in the year it went private, the Restoration Hardware that arrived on the NYSE Friday is a profitable company, and one that's grown its revenues in the double digits over the past 10 quarters. The company has continued to bleed cash, however, with total free cash flow for the past 12 months amounting to negative $55.6 million. Hence the need to raise cash via IPO.

Restoration Hardware operates 73 retail stores, and an additional 12 outlet stores in the U.S. and Canada.

 
 
 
 

Fool contributor Rich Smith and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2093451, ~/Articles/ArticleHandler.aspx, 4/17/2014 3:03:59 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement