Discount retailer Ollie’s Bargain Outlet Holdings Inc. has filed preliminary paperwork to conduct an initial public offering of common stock that could raise up to $150 million.
Based in Harrisburg, Pa., and led by Mark Butler as chairman, president and chief executive officer, the retailer does the majority of its business in home-related merchandise and packaged foods. Clothing, along with electronics and sporting goods, is one of a series of “other” categories that collectively constitute about 32 percent of sales.
In its Form S-1 filing with the Securities and Exchange Commission Monday, the company didn’t provide the number of shares it would sell or a price range for the shares but, for purposes of calculating a registration fee, estimated that the maximum aggregate offering price would be $150 million.
The company was acquired by CCMP Capital Partners LLC and members of the retailer’s management team in 2012 after being incorporated in Delaware the same year. Making frequent use of its slogan, “good stuff cheap,” it claims to sell comparable merchandise at 20 to 50 percent below mass marketers’ prices and 70 percent below department and specialty store prices. Its best customers are members of its “Ollie’s Army” customer loyalty program, which it hopes to expand after the IPO, the date for which hasn’t yet been set.
It currently operates 181 stores across 16 contiguous states in the Northeastern U.S. The company’s net income last year expanded 53.9 percent to $6.7 million as sales grew 18 percent to $638 million. Between 2010 and 2014, the compound annual growth rate of its sales has been 17 percent as adjusted earnings before interest, taxes, depreciation and amortization has had a 16 percent CAGR.
Research conducted for the company by Jeff Green Partners found that Ollie’s could support up to 950 U.S. locations.
Upon completion of the IPO, the stock will be traded under the ticker OLLI on the Nasdaq.