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BJ’s Wholesale Club announced yesterday that it has filed paperwork with the U.S. Securities and Exchange Commission (SEC) with the goal of listing its stock for public purchase on the New York Stock Exchange under the BJ ticker symbol.
The retailer, which operates 215 clubs and 134 gas stations in 16 states along the East Coast, was taken private in 2011 by the private equity firms, Leonard Green & Partners and CVC Capital Partners, for about $2.8 billion. BJ’s has opened 25 new clubs and spent more than $230 million to upgrade its systems and technology since being acquired, according to the filing with the SEC.
BJ’s has managed to improve its profitability since going private, a feat largely accomplished through greater efficiency as its sales growth have not improved in a significant way. The warehouse club, which charges $55 a year for its base membership, generated $259 million last year from its annual fees, according to The Wall Street Journal. BJ’s renewal rate is 86 percent, based on the same report.
Just how much BJ’s management expects to generate from the IPO is unclear. The company’s filing pegged its preliminary goal at $100 million while a Journal report last month said BJ’s owners were looking to bring in $400 million.
- BJ's Wholesale Club Holdings, Inc. Announces Filing of Registration Statement for Proposed Initial Public Offering – BJ’s Wholesale Club Holdings, Inc./PRNewswire
- BJ’s Files for IPO – The Wall Street Journal
- BJ’s Wholesale Club Set For IPO – The Wall Street Journal
- BJ's Wholesale files for IPO in shifting US retail landscape – Reuters/CNBC
- BJ's Wholesale Club is going public (again) – CNN Money