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BJ's Wholesale files to return to public market

By Sweta Singh and Siddharth Cavale<br> <br> <br> <br> May 17 (Reuters) - Warehouse club operator BJ's Wholesale Club Holdings Inc has filed with U.S. regulators to return to the public market, undeterred by a downturn in the retail sector.<br> <br> <br> <br> The company, which was taken private in 2011 for $2.8 billion by private equity firms Leonard Green & Partners LP and CVC Capital Partners Ltd, will list on the New York Stock Exchange under the symbol "BJ", a regulatory filing showed on Thursday.<br> <br> <br> <br> The filing said the offering size was $100 million, a placeholder number given in first preliminary IPO filings. The final size of the IPO could be different.<br> <br> <br> <br> The Wall Street Journal reported website in April the company could be valued between $2 billion and $3 billion, with its private-equity backers raising at least $400 million.<br> <br> <br> <br> The filing did not reveal how many shares the company planned to sell or their expected price.<br> <br> <br> <br> BJ's IPO will be the second retail listing in 2018 after airport concession operator Hudson Ltd and comes at a time when brick and mortar retailers are struggling as consumers spend more of their dollars online.<br> <br> <br> <br> Warehouse club operators, however, have largely bucked the downturn as their business models rely more on recurring membership revenues than just top line sales.<br> <br> <br> <br> "We are in a period now where the consumer economy is looking quite good, investors are a bit more confident with retail now than they have been in the past," Neil Saunders, managing director of GlobalData Retail said.<br> <br> <br> <br> "I think it's a sensible time to do it."<br> <br> <br> <br> The U.S. IPO market has also been encouraging so far this year. Total proceeds raised year-to-date are 35.4 percent higher than a year earlier and nearly 17 percent more IPOs have been priced this year, according to Renaissance Capital, a manager of IPO-focused ETFs.<br> <br> <br> <br> "BJ's is looking to make its debut in a very competitive market, but it's performance keeping in mind its scale, is strong. The company deserves to be valued between $5 billion and $8 billion," said Phil Davis, CEO of, an investment advisory service.<br> <br> <br> <br> Davis said BJ's stronghold in Northeast, where bigger rival Walmart Inc's Sam's Club has closed several stores, will help it compete better.<br> <br> <br> <br> The more than three decades old BJ's owns 215 warehouse clubs, mainly on the U.S. east coast, and also competes with Costco Wholesale Corp.<br> <br> <br> <br> The company generated net income of $50 million on total sales of $12.8 billion for fiscal 2017.<br> <br> <br> <br> BofA Merrill Lynch, Deutsche Bank Securities, Goldman Sachs and J.P. Morgan will be underwriting the IPO. (Reporting by Sweta Singh and Sidharth Cavale in Bengaluru; Additional reporting by Diptendu Lahiri and Aishwarya Venugopal; Editing by Arun Koyyur and Saumyadeb Chakrabarty)<br> <br> <br> <br> Advertisement<br> <br> <br> <br> If you beloved this short article and you would like to obtain more details with regards to wholesale lotio - kindly pay a visit to our own web-page.