Dick's Sporting Goodsfiles for IPO
Sep 16, 2002 12:00 PM, From staff and wire reports
Pittsburgh, Pa.-based Dick's Sporting Goods Inc. plans an initial public offering on the New York Stock Exchange. According to a recent SEC filing, the company wants to issue 8.4 million shares at an estimated price of $14 to $18 a share. Dick’s operates 134 stores in 24 states.
The IPO is tentatively scheduled for the week of Sept. 30.
Investment banks Merrill Lynch & Co. and Goldman, Sachs & Co. and two other underwriters will have the option to buy about 1.3 million shares from selling shareholders to cover overallotments, according to the amended IPO prospectus.
Dick's Sporting Goods is backed by Vulcan Ventures, an investment vehicle for Microsoft Corp. co-founder Paul Allen, who has a 12% stake in the company. Dick’s wants to list its stock on the New York Stock Exchange under the symbol "DKS."
Under the proposed terms, the company could raise as much as $75.6 million in proceeds from the IPO. The proceeds will be used to reduce debt, open new stores, and for general corporate purposes, including working capital.
Dick's said it plans to add six more stores in fiscal 2002 and possibly another 20 stores in 2003. The company racked up $1.1 billion in sales in 2001, and filed a preliminary prospectus in July, one month after rival Big 5 Sporting Goods Corp. went public.
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