Saturday, November 14, 2009

Dollar General shares up in the first day of trading

Dollar General, the Goodlettsville-based discount retailer, went to market on Wall Street on Friday and saw its shares rise 8 percent in the first day of trading.
The stock, publicly traded for the first time in two years, closed on the New York Stock Exchange at $22.73 a share, up $1.73 on the day.

Still, that performance finished a distant second to a rival retail IPO, or initial public offering, of stock from teen retail chain rue21.

Its shares soared nearly 28 percent and closed at $24.30, up $5.30 per share on its first day out of the Wall Street gate.

"The retailers who've done successful IPOs all have had a bit of a recessionary angle," said Nick Einhorn, a research analyst at Renaissance Capital LLC, pointing to Dollar General and rue21.

The rue21 offering of about 6.77 million shares was priced at $19 to start.

Rue21 said it expects to receive net proceeds of about $29.2 million, which it will use to repay part of its borrowings as well as for working capital and other purposes. It has 502 stores in 43 states, and focuses on trendy apparel for teens at moderate prices.


Dollar General may go public next weekHome Buyer Tax Credit Extended, Expanded