US shoe retailer Boot Barn will be issuing its initial public offering of shares(IPO) this week. The move has arisen some positivism amongst investors and analysts in a moment were IPOs are either disappointing or just been cancelled last minute.
Boot Barn (BOOT) is the largest retail chain focused entirely on US western and work-related footwear and apparel. It was recapitalised by current owner, private equity firm Freeman Spogli in 2011. Freeman Spogli now hopes to follow up the success of El Pollo Loco (LOCO), which has gained about 130 percent since its July IPO, point out trade media.
“Like Loco, Boot Barn is not saddled with debt and its Western US concentration leaves room for growth in the Midwest and Eastern US. Its strong comparative store sales growth and unit growth draw similarities with the last consumer IPO, Dave & Buster's (PLAY; up 18 percent since 10/9 offering), suggesting investors will not give this IPO the boot,” point out analysts at Renaissance Capital.
There are three on the IPO calendar for this week, with total proceeds expected to reach 900 million dollars. Last week saw three IPOs raise 163 million dollars, while four were postponed and four more withdrew.