By Prakhar Srivastava and Abigail Summerville
Feb 5 (Reuters) - Bob's Discount Furniture, backed by private equity firm Bain Capital, secured a valuation of $2.22 billion, after its shares opened flat in their debut on Thursday, as investors stayed selective about new offerings in a packed week.
The home furnishings retailer's stock opened at $17 in its New York Stock Exchange debut, same as its offer price.
The Manchester, Connecticut-based company raised $330.7 million in its U.S. initial public offering
on Wednesday after it sold 19.5 million shares at the lower end of its marketed range of $17 to $19 apiece.
Clearer policy signals from the Federal Reserve and AI breakthroughs have boosted investors' risk appetite for new offerings and encouraged companies across sectors to wade back into markets after a strong backlog from last year.
This has set the stage for a crowded listings week, with Bob's making its market debut alongside Forgent Power and Eikon Therapeutics on Thursday, while at least three other firms are slated to begin trading on Friday.
Bob's, which began as a single store more than three decades ago, has grown into one of the biggest U.S. furniture chains, with more than 200 showrooms nationwide.
"Bob's was really born from a powerful belief that everyone deserves a home they love and the brand stands for value... That is really resonating with investors. Value is always in vogue,” the company's Chief Financial Officer Carl Lukach said in an interview.
"We have a clear line of sight to over 500 locations by 2035 so we're poised to grow... We have significant white space potential," he said.
The company offers a wide range of home furnishings, including bedroom and dining-room sets, reclining furniture and table lamps.
Investment funds advised by Bain Capital are expected to retain roughly 75% ownership after the offering.
J.P.Morgan and Morgan Stanley were joint-lead book-running managers.
(Reporting by Prakhar Srivastava in Bengaluru and Abigail Summerville in New York ; Editing by Shilpi Majumdar and Leroy Leo)
