BJ’s Enters the Market With a Bang in IPO

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BJ’s Wholesale Club Holdings Inc. (NYSE: BJ) entered the market with a bang in its initial public offering (IPO). The stock priced at $17 per share, at the high end of its expected range, but entered the market at $21.25 and it has only gone up from there.

The original expected price range for the 37.5 million shares was $15 to $17. Also there is an overallotment option for an additional 5.625 million shares. At the $17 price, the entire offering is valued up to $733.125 million.

The underwriters for the offering are Merrill Lynch, Deutsche Bank, Goldman Sachs, JPMorgan, Morgan Stanley, Citigroup, Jefferies, Wells Fargo, Nomura, Baird, Guggenheim, Natixis, William Blair and Siebert Cisneros Shank.

This company is a leading warehouse club operator on the east coast of the United States. It delivers significant value to its members, consistently offering 25% or more savings on a representative basket of manufacturer-branded groceries compared to traditional supermarket competitors. BJ’s provides a curated assortment focused on perishable products, continuously refreshed general merchandise, gas and other ancillary services to deliver a differentiated shopping experience that is further enhanced by its omnichannel capabilities.

BJ’s intends to use the net proceeds from this offering to repay its indebtedness, with the remainder going toward working capital and general corporate purposes.

Shares of BJ’s were last seen up about 28% at $21.77, with a range of $20.56 to $23.01 on the day thus far. Also about 15 million shares had moved as of noon Eastern.