Dave & Buster’s Entertainment Inc. set terms Monday for its planned initial public offering of $16 to $18 per share.
The Dallas-based parent to the Dave & Buster’s chain said it will offer 5.9 million shares of common stock, which, at the midpoint, the company estimates would raise about $91 million, according to filings with the Securities and Exchange Commission. Underwriters will have the option to purchase up to 882,352 additional shares.
Proceeds will go toward repaying outstanding debt, the company said.
The company has been approved to list its stock on the NASDAQ Stock Market LLC under the symbol “PLAY.”
Dave & Buster’s announced plans for an IPO earlier this month. It is the dining and entertainment chain’s second attempt at a return to the public market under the ownership of private-equity firm Oak Hill Capital Partners, which acquired Dave & Buster’s in 2010 in a deal estimated at $570 million.
Oak Hill filed for an IPO in 2011, but later pulled back, citing market volatility.
For Dave & Buster’s, the planned IPO is a return to the public market. The chain was operated as a public company from 1997 to early 2006, when it was taken private by prior owner Wellspring Capital Partners III L.P.
As of Sept. 26, Dave & Buster’s operated 70 locations in 27 states and Canada. Company officials have projected the chain could surpass 200 locations in the U.S. and Canada. The company is exploring a move outside North America.
Jeffries LLC and Piper Jaffray & Co. are acting as lead book-runners for the offering. William Blair & Company LLC; Raymond James & Associates Inc.; and Stifel, Nicolaus & Company Inc. are also acting as book-runners. LOYAL3 Securities Inc. is acting as co-manager.
Contact Lisa Jennings at [email protected].
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