Party City Shares Up in Early Trading

Shares of Party City Holdco Inc., a retailer for party supplies, opened at $20.50 in their market debut Thursday, 21% above their initial public offering price.

The stock recently traded at $20.35 on the New York Stock Exchange under the symbol "PRTY".

Party City, backed by private-equity firm Thomas H. Lee Partners LP, priced its initial public offering at $17 a share on Wednesday, at the high end of its range.

The deal raised about $372 million by selling roughly 21.9 million shares. That total doesn't count an overallotment option, which gives underwriters the opportunity to sell additional shares under certain circumstances.

The company, which sells party supplies such as balloons, decorations, costumes, and paper and plastic tableware products, has about 860 party superstores in the U.S. and approximately 40 locations in Canada. According to the company's prospectus, it believes it has the opportunity to open more than 350 additional Party City stores in North America, and anticipates opening approximately 30 new stores a year.

Goldman Sachs, Bank of America, Credit Suisse and Morgan Stanley led the deal.

Write to Corrie Driebusch at [e-mail]

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