The Best & Less Group Holdings Ltd (ASX: BST) share price has entered the secondary market well into the green as it commenced trading after its initial public offering (IPO).
Best & Less shares are now exchanging hands at $2.32 apiece, a 6.89% jump on the float price of $2.16.
Let's explore how it has unfolded for Best & Less so far.
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Quick recap on Best & Less
Best & Less Group, made up of the brands Best & Less in Australia and Postie in New Zealand, is a retailer specialising in baby and kids' apparel.
The company generates 86% of revenue from its proprietary brands, all designed in house. Its clothing is then distributed for sale across 246 physical stores and online.
The group recorded unaudited sales revenue of $663 million for FY21, beating the prospectus forecast of $658 million.
Best & Less IPO
Best & Less listed on the ASX today after a "successful public offering" in which the company raised $60 million on a valuation of $2.16 per share.
At this price, its market capitalisation was $271 million. Demand for its shares was "well supported by institutional and retail investors", according to the company.
Best & Less shares jumped to an intraday high of $2.31 after entering the secondary market.
For context, the S&P/ASX 200 Index (ASX: XJO) has posted a return of 0.07% today.
Regarding guidance, Best & Less sees "FY21 pro forma [earnings before interest, tax, depreciation and amortisation] EBITDA to exceed the pcp [prior corresponding period] by over 100% and to outperform the prospectus forecast…by approximately 15%".
The company also finished FY21 with a cash position of ~$27 million, approximately 18% ahead of forecasts.
Speaking on the listing, Best & Less chief executive Rodney Orrock said:
Today marks another milestone in the history of Best & Less Group, which has served generations of families across Australia and New Zealand.
Foolish takeaway
The Best & Less share price jumped more than 7% after entering the secondary market today. Best & Less shares trade under the ticker "BST".
The company has a market capitalisation of $282 million at the time of writing.
