The Container Store is hoping that investors are as inspired by its growth prospects as consumers are by the potential for a clean closet.
The organization and storage retailer is one of nine companies expected to make their market debut next week.
The Container Store Group began as one store in Dallas in 1978 and now includes 62 stores nationwide that sell organization and storage products. The company also owns Elfa, a Swedish maker of storage system parts that are sold in its stores and elsewhere.
The company is unprofitable, but its revenue is growing again after taking a hit during the recession. Sales have increased 28% over the past five fiscal years. Sales came to $706.8 million in the Container Store's most recent fiscal year, which ended March 2.
The company plans to open six stores this fiscal year and seven in fiscal 2014. It sees growing demand from baby boomers whose kids have left home, their kids moving into their first houses and the increase of families in which both parents have jobs.
It plans to offer 12.5 million shares for $14 to $16 each. If they price at $15, Container Store would raise $187.5 million. The banks managing the deal may buy more stock. If they do and shares price at $15, Container Store expects proceeds of $197 million after expenses. It plans to spend the money on paying preferred dividends to its private equity firm backer, Leonard Green & Partners, as well as current and former employees, and repaying debt.
Leonard Green will own nearly 61% of the company's shares after the IPO.
Container Store expects that its shares will be traded on the New York Stock Exchange under the symbol "TCS".
Here's a look at the other companies expected to hit the market next week:
- 58.com, a Chinese company that operates an online classifieds marketplace for merchants and consumers, plans to offer 11 million American depositary shares, priced between $13 and $15.
- Brixmor Property Group, an owner of U.S. community and neighborhood shopping centers, based in New York, plans to offer 37.5 million shares, priced between $19 and $21 each.
- Criteo S.A., a French pay-per-click Internet advertising company, plans to offer 7.2 million American depositary shares, priced between $23 and $26 each.
- Essent Group Ltd., a mortgage insurance company, based in Bermuda, plans to offer 19.7 million shares, priced between $14 and $16 each.
- Marcus & Millichap, a commercial real estate brokerage firm, based in Calabasas, Calif., plans to offer 6 million shares, priced $14 to $16 each.
- Qunar Cayman Islands Ltd., a Chinese travel information website, plans to offer 11.1 million American depositary shares, priced between $10 and $12 each.
- Surgical Care Affiliates, the operator of outpatient surgery facilities in the U.S., based in Deerfield, Ill., which was once owned by HealthSouth Corp., plans to offer 9.8 million shares, priced between $21 and $24 each each.
- Veracyte, a San Francisco-based company that develops molecular diagnostic tests for thyroid cancer, plans to offer 4.7 million shares, priced between $13 and $15 each.