Shares of Restoration Hardware soar in public trading debut
BY Staff and Wire reports
Saturday, November 03, 2012
11/03/12 at 5:01 AM
Restoration Hardware jumped in its first day of trading as investors decided Friday to take a bet on a familiar retail name and the gradual housing recovery.
Shares rose $7.10, or nearly 30 percent, to close at $31.01 on the New York Stock Exchange. The Corte Madera, Calif.-based home decor retailer raised $124 million, selling 5.2 million shares for $24 each.
Restoration Hardware is one way investors could capitalize on the recovery, said Sam Hamadeh, CEO of PrivCo LLC, which researches private companies.
"You get familiar brand name plus an IPO bet on the housing market," he said.
Restoration Hardware Holdings Inc. operates more than 70 stores, including one at Utica Square Shopping Center.
The retailer was losing money when it was bought by a private equity firm in 2008. It has since redesigned stores, revamped its product line and focused on a higher-end market. It's trading under the "RH" ticker symbol.