Tech & Biz

Lululemon shares perky on IPO

by ryan | July 27, 2007 at 08:18 am

784 views | 10 Recommendations | 1 comment

Lululemon has down wonderful things for the female behind and is now doing wonderful things for investors pocket books. Let's hope that they use some of this money to invest in butt shaping and body enhancing clothes for men and women alike...and all this as the Dow Jones continues to shake up investors.

Lululemon Athletica Inc. shares soared about 53 per cent in debut trading in New York and Toronto, suggesting robust investor demand for the trendy yoga-wear retailer.

The shares jumped to $27.61 (U.S.) in Nasdaq trading after the stock was priced at $18 a share, with almost 10 million shares changing hands. The $327.6-million it raised through its initial public offering was much higher than anticipated.

The Vancouver-based chain of 59 stores had planned to raise about $200-million in the offering, with new investors having a 26-per-cent stake. The company had mulled reducing the size of its IPO but this week decided to keep the offering at 18.2 million shares.