Restoration Hardware Holdings [stock RH][/stock], a furniture retailer that specializes in home furnishings, priced its initial public offering at the high end of its proposed range, $24 a share.
The IPO price values Restoration Hardware at $887.3 million, 27 times net income within the past 12 months since July, Bloomberg reported.
Restoration Hardware shares started trading on the New York Stock Exchange under the “RH” ticker symbol.
While its great news for Restoration Hardware — the bigger impact is that this shows the housing market is strengthening. And, the company wouldn’t time turning public again if it didn’t feel the industry was progressing.
In 2008, Catterton Partners took Restoration Hardware private during the housing downturn. Sears tried to enter the bidding war for RSTO before it turned private by offering a $6.75 bid and later a $4.55 bid, but lost the battle when Morrison & Foerster sued.
Back in June 1998, the company had $62 million IPO, selling a share for $4.50.
Currently, Restoration Hardware has 83 high-end home furnishing retail stores in the U.S. and Canada. The company raised $124 million by offer 5.2 million shares, reported Renaissance Capital.
While most housing companies were panicking in the wake of 2008, Restoration Capital knew what it was doing – biding time until the housing market went positive.
The time, it appears, has finally come.