Boston-based private equity firm Thomas H. Lee Partners has put a portion of the retailer Party City back on the market.
Lee paid $2.7 billion in 2012 for a majority stake in the retailer, which first tried to go public in 2011. In the offering, the stock was priced at $17, the upper end of the range proposed by underwriters, raising $372 million for the company, according to Bloomberg.
The stock $3.57, or 21 percent, to close at $20.58 in trading on the Nasdaq Stock Market. T.H. Lee continues to control a majority of the company which is based in Elmsford, N.Y.,, and the proceeds of the IPO will mostly go toward paying down the company’s debt.
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According to the prospectus for Party City Holdco, Inc., which is the company’s legal name, the retail party supply market is around $10 billion per year. The prospectus said the 880-location retailer has grown at a rate of 7.9 percent per year from 2009 through 2013, but also faced challenges, such competition and the risk of future helium shortages cutting into balloon sales.
Jack Newsham can be reached at jack.newsham@globe.com. Follow him on Twitter @TheNewsHam.