11/10/09

Two traditional value retailers are on the US IPO calendar for the week of November 9.

Dollar General, a KKR-backed small-box discount retailer with 8,700 stores in 35 states, plans to raise $750 million by offering 34.1 million shares at a price range of $21.00 to $23.00. Citi, Goldman Sachs, and KKR are the lead underwriters on the deal.

rue21, a value-focused teen fashion retailer with over 500 stores in 43 states, plans to raise $115 million by offering 6.8 million shares at a price range of $16.00 to $18.00. BofA Merrill Lynch, Goldman Sachs, and J.P. Morgan are the lead underwriters on the deal.

Both companies hope to emulate the success of Vitamin Shoppe (VSI), which in late October became the first traditional retailer to go public in almost two years. Its stock is up 14%, and both Dollar General and rue21 will hope that their strong same-store sales growth and expansion opportunities whet investors' appetites. Read our full IPO Commentary.