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NEW YORK — Discount retailer Gordmans Stores Inc. priced shares of its initial public offering below the expected range, raising $58.9 million, the company said Thursday.
The Omaha, Neb. company offered 3.2 million shares, while its stockholders sold 2.1 million shares. They priced at $11 each, below the expected price range of $13 per share to $15 per share.
Pricing low or below expectations has been common this year because of volatile stock markets and weak market debuts by companies. Nearly half the companies going public have priced beneath expected ranges, according to IPO research firm Renaissance Capital.
The company said net proceeds from the offering, after expenses, were $29.8 million. It plans to use funds to repay debt, distribute bonuses to certain executives and for working capital and general corporate purposes.
Gordmans operates 67 department stores in shopping centers throughout the Midwest. The company sells clothing, accessories, footwear and home decor.
Shares are expected to trade on the Nasdaq under the symbol "GMAN" on Thursday.
