BJ’s Plans To Issue 37.5M Shares In IPO

With its initial public offering (IPO) on the horizon, BJ’s Wholesale Club said in a regulatory filing that it anticipates offering 37.5 million shares. The warehouse club retailer also said that it plans for each share to be issued in a range between $15 to $17, leading to a market cap topping $2.15 billion, Chain Store Age reported.

The news comes as BJ’s had filed for an IPO just seven years after going private, The Wall Street Journal reported in May. It was stated that the deal could value the Westborough, Massachusetts-based, membership-only warehouse chain somewhere between $2 billion and $3 billion.

When private equity partners Leonard Green & Partners and CVC Capital Partners took the company private in September 2011, the deal was worth almost $3 billion. They have since paid themselves a number of dividends. The partners reportedly expect to raise a minimum of $400 million with the IPO — more than they were offered by other private equity firms that were interested in buying.

In the filing listed on May 17, BJ’s said it could sell $100 million worth of shares. With 215 locations across 16 eastern U.S. states, BJ’s saw $12.75 billion in annual sales and drummed up profits of more than $50 million in its fiscal year ending in February.

Heading up to the IPO, BJ’s has been rolling out digital shopping features. Last fall, for example, the wholesale chain debuted its redesigned mobile app built nearly entirely around that enhanced experience for customers. The upgrade included an “Add-to-Card” feature designed to allow customers to digitally select and save coupons directly to their membership cards, so discounts can automatically be applied at checkout.

“The new mobile site is an important step in our omnichannel transformation,” Rafeh Masood, SVP and chief digital officer at BJ’s, stated at the time. “More and more members use their mobile devices every day, and enhancing the BJ’s mobile experience makes shopping more convenient for our members.”