Wall Street Newbie: Francesca's Holdings for $150M IPO

Wall Street is about to welcome a new incorporation to its fashion retailers as Women's apparel and accessories retailer Francesca's Holdings Corp. has just filed for up to an estimated $150 million to be raised in an initial public offering, as it seeks

proceeds to repay debt and possible expansion.

The operator of Francesca's Collections stores focuses on fashion-conscious 18- to 35-year-olds and designs locations 'to feel like independently owned, upscale boutiques.' Francesca's Holdings Corporation, is currently offering women's apparel and jewellery at 236 locations in 38 states

According to market data, the company has about $41.4 million in proceeds from the offering earmarked toward repaying a senior secured credit facility. Remaining funds may be used for opening new stores and growing its e-commerce business.

For the year ended Jan. 29, Francesca's swung to a profit as sales jumped 70%. Same-store sales climbed 15% on top of a 9.8% increase a year earlier.

The Houston, TX-based company, which was founded in 1999 and booked $135 million in sales last year, plans to list on the NASDAQ under the symbol FRAN. Private equity firm CCMP Capital acquired a controlling interest in the company in February 2010 and currently holds an 84% stake. Goldman, Sachs & Co., J.P. Morgan and Jefferies & Co. are the lead underwriters on the deal. No pricing terms were disclosed.

New York-based private equity firm CCMP Capital Advisors acquired the company last year and will continue to hold a controlling stake after the IPO. CCMP paid about $200 million, The Wall Street Journal reported at the time, citing people familiar with the matter.