Let's get this party started: Party City goes public
The IPO market has lots to celebrate today. It's only fitting that Party City is a guest of honor.
Wall Street seems to think good times are rolling for Party City, which is the largest party goods retailer in North America.
It debuted on Thursday morning at $20.50 a share. That's more than 20% above its initial public offering price of $17 on Wednesday night.
The coming out party was held at the New York Stock Exchange, where Party City is now trading under the ticker symbol "PRTY." The IPO values the retail chain, which sells everything from balloons and pinatas to costumes, at nearly $2 billion.
Etsy, the online marketplace for vintage and handmade goods, is also set to begin trading on Monday, making it the largest certified socially-responsible company, or B Corporation, to go public in the U.S.
Another IPO Thursday came from Virtu Financial, a high-frequency trading firm that had its public debut delayed by a year due to the controversy sparked by the Michael Lewis book "Flash Boys," which argues that U.S. markets are rigged by high-frequency traders.
The party is growing: The Party City deal raised $372 million, but company doesn't plan to do anything wild and crazy with the proceeds.
The cash will be used to help pay down its heavy debt burden, much of which was incurred when Thomas H. Lee Partners took a majority stake in the company in 2012. The private-equity firm now owns a smaller stake in Party City, though it remains a majority shareholder.
Party City offers a way for investors to capitalize on the $10 billion retail party goods industry, which lures lots of customers during special occasions like Halloween, Fourth of July and the Super Bowl.
Get ready to see more Party City stores. The chain already has 900 locations, but it plans to open another 350 stores in North America and ramp up expansion overseas as well.
If the banks underwriting the Party City IPO exercise their options, the total value of the IPO will rise to $428 million.
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