Gander Mountain raised $91.5 million in a stock offering two months ago and its shares have gone up more than 50% since then. The Sidney, NE-based company filed in March to raise as much as $230 million to repay debt and expand to 12 stores from the nine stores it now has. Each new store costs up to $70 million to build.
About 9.38 million shares, 6.25 million by the company, will be sold at $15 to $17 each, Cabela's says in a recent filing with the US Securities and Exchange Commission.
Other Cabela's competitors include The Sports Authority Inc., Dick's Sporting Goods Inc., L.L. Bean Inc., Orvis Co. and Wal-Mart Stores in a $60 billion market for outdoor recreation products. Cabela's recently reported first quarter net income of $8.05 million on revenues of $313.9 million. Sales were $1.4 billion last year, and have risen at an annual clip of 16% for the last five years.
At $17 a share, the company would get $106.3 million from the sale, which is being managed by Credit Suisse First Boston and J.P. Morgan Securities Inc. Wachovia Capital Markets, Stephens Inc. and William Blair & Co. are co-underwriters.
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