Lululemon Athletica Inc. expects to raise at least $164 million from an offering of 16.4 million shares of common stock, but that's less than initially projected.
The company said in a revised preliminary prospectus, filed with the Securities and Exchange Commission Friday, that it was offering 16.4 million shares of common stock, or almost a 10 percent decline from an IPO that was projected at 18.2 million shares in a filing with the SEC a few days earlier. No reason was given for the change.
Lululemon said it expected that the IPO price would be between $10 and $12 a share. The company has received approval to list the shares over-the-counter under the symbol "LULU" and also on the Toronto Stock Exchange under the symbol "LLL."
Had it offered the initial projected 18.2 million shares, the company could have raised a minimum of $182 million.
The Canadian women's athletic apparel retailer operates 59 stores and plans to use the proceeds from the IPO to pay for new stores and other general corporate purposes.
From the filing, Lululemon said it had $16.2 million in operating income for fiscal 2006, which included a onetime $7.2 million litigation settlement charge. The company said revenues for fiscal 2006 were $148.9 million. At stores open at least a year, sales were up 25 percent and the company posted average sales of $1,400 per square foot, according to the regulatory filing. Lululemon said in the filing that its average sales were "among the best in the apparel retail sector."
The company, started in 1998 by chairman Dennis "Chip" Wilson, said in the filing that it did "not intend to pay dividends for the foreseeable future."
Merrill Lynch & Co. and Goldman Sachs are among the underwriters for the IPO.
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