Investors anxious to own a piece of trendy shoemaker Crocs Inc. drove the share price of Colorado’s newest public company up more than 40 percent on its first day of trading today.
Niwot-based Crocs offered 9.9 million shares at $21 a share Tuesday evening, raising nearly $96.9 million after underwriting fees for the company and a similar amount for dozens of selling shareholders, including the company’s founders.
When trading began on the Nasdaq this morning, the stock opened at $30, hit a high of $32.57 before settling down to trade between $29 to $30 a share for the rest of the day.
“We believe we have developed a very unique set of products and look forward to continuing to grow our business and the Crocs brand,” said CEO Ron Snyder. “Although being public brings important benefits to Crocs, the most important thing for us is to continue making great shoes that people can’t live without.”
Investors gave Crocs a market value of $1.15 billion, making it the country’s fifth largest public shoemaker behind Nike, Reebok International, Timberland Co. and Wolverine Worldwide, according to Bloomberg.
Crocs ranks as the state’s 29th largest public company in market value behind Vail Resorts.
Unlike Chipotle Mexican Grill, another hot Colorado IPO that went out in January, Crocs shares didn’t double on their first day of trading. Denver-based Chipotle, which spun-off from McDonalds, priced at $22 a share and opened at $44 a share.
But Croc shares did double from the $13 to $15 a share that the offering’s lead underwriters, Piper Jaffray and Thomas Weisel Partners, initially estimated the market would support.
“Right now, their reputation is that this was a wonderfully successful IPO versus one that opened higher and then broke its issue price,” said David Menlow, president of IPOFinancial.com in New Jersey.
The company didn’t squeeze out all the return available to investors, and its shares also didn’t “float away like an inflated balloon,” Menlow said.
“Were are very happy,” Snyder said of the offering.
Snyder and the Crocs’ management team made more than 80 presentations in 70 cities to promote the offering in recent weeks, including a last hour pitch in Milwaukee.
The Crocs team flew back from Minneapolis to Denver this afternoon before taking the celebration to an area nightclub.
“I slept much better after two-and-a-half weeks on the road,” Snyder said.
Crocs rubber clogs, sold in a wide palette of colors, started as a Midwest phenomenon but have gained traction along the coasts, Snyder said. The company also has begun selling the shoes in more than 40 countries overseas.
Crocs, which sold $1.2 million worth of shoes in 2003 and $13.5 million in 2004, sold about 6 million pairs and generated approximately $108 million in 2005. The company is rolling out several new colors and is expanded its product line to more than 17 styles.
After expenses, the IPO should net about $95 million for Crocs, which said it plans to spend portions of the proceeds as follows:
Capital spending of $11.7 million to improve manufacturing capacity and other infrastructure.
A $3.5 million upgrade of the company’s financial reporting systems to comply with U.S. Securities and Exchange Commission requirements.
Repayment of a $5.9 million credit line and another $5.7 million in debt.
Staff writer Aldo Svaldi can be reached at 303-820-1410 or asvaldi@denverpost.com.
