initial public offerings (IPOs) trading on American exchanges

Thursday, July 28, 2011

Teavana IPO rises 64% on its first trading day, raised about $121.4 million

A day after coffee chain Dunkin' Brands Group Inc. rose nearly 47% following its initial public offering, tea retailer Teavana Holdings Inc. shot even higher, gaining 64% on its first day of trading.

Teavana and three other IPOs made their debuts Thursday; with a total of seven completed since Wednesday, it has been the busiest week for new stocks since February.

Teavana has raised about $121.4 million from its initial public offering of 7.1 million shares of common stock.
The offering was priced at $17 per share, above the $13 to $15 price range disclosed in a recent regulatory filing.  Teavana is offering about 1.1 million shares, while selling stockholders are offering approximately 6.1 million shares.

The company anticipates net proceeds of about $15 million, after estimated expenses as well the underwriter discount and commissions. Teavana plans to use the proceeds to redeem all outstanding shares of its Series A redeemable preferred stock and to pay back debt.

The underwriters have an option to buy up to an additional 1.1 million shares from certain selling shareholders to cover any excess demand. Teavana won't receive any proceeds from shares sold by the selling stockholders.

Teavana said it expects to have about 38 million shares outstanding immediately after the offering, according to the Securities and Exchange Commission filing.

Teavana's stock closed at $27.80 on the New York Stock Exchange, up from its IPO price of $17. A total of 7.1 million shares were sold at a price above the stock's expected pricing range of $13 to $15.

The company reported net income of $12 million and revenue of approximately $124.7 million for the fiscal year ended Jan. 30.

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