Shares of the Vince Holding Corporation surged in their first day of trading on Friday as investors continued to express interest in apparel retailers.
Vince, which is owned by Sun Capital Partners, raised $200 million by selling 10 million shares for $20 each, according to a statement. That was a dollar more than the initial range of $17 to $19 a share. Vince’s shares were up $8.25, or more than 41 percent, to $28.25, in afternoon trading under the ticker symbol “VNCE†on the New York Stock Exchange.
The I.P.O. is the latest example of public investors’ demand for fashion, a trend stretching back to Michael Kors‘s wildly successful market debut nearly two years ago. Since then, several fashion companies â€" including elite houses like Prada and Bruno Cucinelli â€" have flocked to the stock markets.
Vince, known for its cashmere sweaters and women’s knits, was founded in 2002 in Los Angeles by Rea Laccone and Christopher LaPolice. It has since added men’s wear and shoes. Its sales have grown at a steady clip in recent years, with the company reporting $114.7 million in revenue for the first six months of the year, up 27 percent from sales in the period a year earlier. Its profits for the same period doubled, to $2.4 million.
The I.P.O. is a comeback of sorts for Sun Capital. The private equity firm bought Kellwood, a collection of retail brands, for about $955 million five years ago. The deal has caused some heartburn for Sun Capital, which reportedly wrote the company down to zero at one point. Sun Capital is keeping at least a 68.1 percent stake.
The I.P.O. was led by Goldman Sachs and Baird.
