Retail

Ollie's Sets Up Its Secondary Offering

Chris Lange

Published: February 17, 2016 12:05 pm

Last Updated: January 13, 2020 1:05 pm

Ollie’s Bargain Outlet Holdings Inc. (NASDAQ: OLLI) has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding a secondary offering that it is now commencing. The company is not offering any shares, but the selling stock holders are putting up 6.5 million, with an overallotment option for an additional 975,000 shares. The most recent closing price was $21.26, which would value the entire offering at $158.9 million.

The underwriters for this offering are JPMorgan, Jefferies, Merrill Lynch, Credit Suisse, Piper Jaffray, RBC Capital Markets and KeyBanc Capital Markets.

The company calls itself a “highly differentiated and fast-growing, extreme value retailer of brand name merchandise at drastically reduced prices.” It offers customers a broad selection of products, including housewares, food, books and stationery, bed and bath, floor coverings, toys and hardware.

The chairman, president and chief executive, Mark Butler, co-founded Ollie’s in 1982, based on the idea that “everyone in America loves a bargain.” From the time Butler assumed his current position as president and CEO in 2003, Ollie’s has grown from operating 28 stores in three states to 203 stores in 17 states, at the end of January 2016.

Ollie’s believes that there is opportunity for more than 950 Ollie’s locations across the United States, based on internal estimates and third party research conducted by Jeff Green Partners, a retail real estate feasibility consultant that provides market analysis and strategic planning and consulting services.

The company will not receive any proceeds from this offering. Instead the selling shareholders will receive all the proceeds.

Shares of Ollie’s were trading down 0.5% at $21.15 on Wednesday, with a consensus analyst price target of $22.17 and a 52-week trading range of $14.88 to $22.99.