WAYNE, NJ-Following one of the worst years in recent memory, public offerings are rebounding nicely this year. Case in point, Toys "R" Us Inc.--which was taken private in 2005 by an investor group led by Bain Capital, Kohlberg Kravis Roberts & Co, and Vornado Realty Trust--plans to return to the public markets, aiming to raise $800 million in the largest US initial stock offering so far this year, according to a Wall Street Journal report. The IPO also would mark the largest retail IPO since discounter Dollar General Corp. raised $824 million through an initial sale in November.
The locally based retailer, with annual sales of $13.6 billion and nearly 1,600 stores under its umbrella, has filed a registration statement with the Securities and Exchange Commission saying the number of shares to be offered and a price range have yet to be determined. Proceeds from the IPO are to be used to pay down debt and for other general purposes, the company said. Toys "R" Us will use most of the capital raised from the offering to repay its "substantial indebtedness," the filing said. As of January 2010, the company had more than $5.2 billion in debt.
Last year, just 63 companies went public as investors avoided wading into the market chaos that defined the first half of last year. But a backlog of IOPs by companies owned by private-equity firms, including Nielsen and hospital chain HCA Inc., could derail some of the deals.
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