Mattress Firm Stock Begins Trading on NASDAQ
November 21, 2011,
HOUSTON-Mattress Firm began its new life as a public company on Friday, with its stock opening for trading on the NASDAQ exchange under the symbol MFRM.
The stock opened at $19 a share, a price that finished the day gaining nearly 16 percent in value to close at $22 per share. In a company statement, Mattress Firm said it would use the net proceeds from its initial public offering, which it expects to total $95 million, mostly to repay debt and to pay accrued management fees and interest. The remainder will go toward providing itself with working capital and "other general corporate purposes," and the IPO is expected to finish on Wednesday of this week, the statement said.
For the first six months of fiscal 2011, Mattress Firm reported net income of $4.7 million, up from $104,000 in the first six months of fiscal 2010. Net sales for the first six months of this year were $331.8 million, an increase of 41 percent over the same period in the previous year.