GNC Files $400M IPO

PITTSBURGH--GNC Corp. announced its filing for initial public offering (IPO), with proceeds to be used to redeem all of its outstanding preferred stock and for working capital and general corporate purposes. GNC set a proposed maximum aggregate value of $400 million, for the purposes of establishing the registration fee; the Securities and Exchange Commission (SEC) document does not list the total number of shares or the price per share offered. In fact, an undisclosed number of IPO shares will be offered by certain shareholders, with proceeds due the sellers, not the GNC. However, the company did reveal it aims to be listed on the New York Stock Exchange (NYSE) under the symbol GNC. The filing lists Merrill Lynch, Lehman Brothers and UBS Investment Bank as the IPO underwriters.

Scott Van Winkle, managing director of equity research with Canaccord Adams (formerly Canaccord Capitol and Adams, Harkness and Hill) said since GNC is ownded by private equity firms, an IPO is the natural liquidity event for the owners. "I believe that the company needs to make investments in its store base, and access to public equity capital should be positive," he said. "I am, however, a little surprised to see them going public after just one good quarter of performance."