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Gander Mountain Shares Off to Fast Start

BLOOMINGTON-The sporting goods retailer's shares went public at $16 a share, and soon were trading at $22 a share--one of the best openings in the last few years.

By Jim McCartney | Updated on April 25, 2004

BLOOMINGTON, MN-Gander Mountain’s debut last week may rank as one of the best IPOs in years, according to stock watchers. After going public at $16 a share, the outdoor sporting goods retailer’s shares quickly bolted past the $20 mark, and came close to hitting $25 a share Friday before falling back to $24.10 a share.

Gander Mountain sold 5.725 million shares of its common stock, and granted the underwriters a 30-day option to purchase up to an additional 858,750 shares at the initial public offering price to cover over-allotments. Assuming all shares are sold, the company would raise about $105 million, minus an estimated $12 million in fees.

Gander Mountain has 66 outdoor lifestyle stores in nine mostly Midwest states– Illinois, Indiana, Iowa, Michigan, Minnesota, New York, Ohio, Pennsylvania and Wisconsin. The retailer, which is still majority owned by Minnesota-based Holiday, will use the proceeds of the offering to pay down debt and open more of its large-format–80,000-sf–stores.

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