The business of selling bins and closet storage has drawn big investor interest.
The Container Store has raised $225 million in its initial public offering, after demand from potential shareholders prompted the company to seek even more in its market debut.
The retailer priced its offering at $18 a share, the top of a range that was raised earlier this week. At that price, investors valued the Container Store at $828 million.
Best known for selling products ranging from filing cabinets to garage bins, the Container Store dominates its relatively specialized niche. As the company notes in its prospectus, some national retailers like Walmart serve as rivals to some extent, but it faces little direct competition. And it is a niche that the chain and its prospective investors believe will grow, as older customers settle into new homes and new families grow.
That is reflected somewhat in the company’s financials: its revenue for the fiscal year ended March 2 rose 11.5 percent from the same time last year, to $706.8 million.
The company still reported a net loss attributable to common shareholders for the year, albeit one that shrank 17 percent from the year-ago period to $90.5 million. Using adjusted earnings before interest, taxes, depreciation and amortization, which strips out certain noncash costs tied to events like the opening of new stores, it earned $87.6 million.
In a perhaps worrisome sign for the future, the Container Store’s sales growth appeared to slow a bit this year. Revenue in the 26 weeks ended Aug. 31 rose just 9 percent, to $343.4 million.
Based in Coppell, Tex., the company runs 62 stores in 22 states and the District of Columbia.
The company is scheduled to begin trading on Friday on the New York Stock Exchange under the ticker symbol “TCS.â€
