The IPO Buzz: Savers Value Village (SVV) Prices Upsized IPO at $18.00 – Above Range

Savers Value Village, Inc. (SVV) increased its IPO’s size to 22.29 million shares – up from 18.75 million in the prospectus – and priced the deal at $18.00 – $1.00 above the top of its $15.00-to-$17.00 range – on Wednesday night (June 28, 2023). This was a case of private equity sweetening the pot. The additional 3.54 million shares were offered by funds managed by the private equity group of majority shareholder Ares Management Corp., Savers Value Village said in its news release announcing the pricing. Savers Value Village is the largest for-profit thrift-store chain in the U.S. and Canada. 

Savers Value Village’s stock jumped 37.6 percent to open at $24.77 – up $6.77 from its $18.00 IPO price – on Thursday (June 29, 2023) on the New York Stock Exchange. At the closing bell, Savers Value Village’s stock was at $23.10 – up $5.10 for a gain of 28.33 percent from its IPO price in its first day of trading on the NYSE.

The anatomy of this IPO is simple:

– Savers Value Village offered 18.75 million shares. With the $18.00 pricing, Savers Value Village will get $337.5 million in IPO proceeds. The company plans to use the IPO proceeds to pay off debt.

– The selling stockholders, collectively the Ares funds, will get about $63.72 million in proceeds from the sale of their 3.54 million shares.

The Savers Value Village IPO raised a total of $401.22 million. 

J.P. Morgan, Jefferies, Goldman Sachs and UBS Investment Bank were the lead book-running managers.

Baird, CIBC Capital Markets, Guggenheim Securities and Piper Sandler acted as book-running managers. B. Riley Securities, KKR Capital Markets LLC, Academy Securities, AmeriVet Securities, Ramirez & Co., Blaylock Van and Siebert William Shank  served as co-managers.

The Healthcare of Ontario Pension Plan (HOOPP) and Norges Bank Investment Management, the asset management arm of Norges Bank, Norway’s central bank, had together indicated an interest in buying in aggregate up to $130.0 million of stock in the IPO at the IPO price, the prospectus says. (Worth noting: That anchor indication represents 32 percent of the upsized IPO at pricing. The indication had been previously described as representing 43 percent of the IPO, based on the terms in the prospectus.)

CNBC’s Bob Pisani says the timing of the Savers Value Village IPO is excellent, if you’re worried that a recession may be just around the corner. **Recommended reading: His “Trader Talk” column today, headlined: “Do you believe a serious recession is imminent? The IPO for you may have arrived”

The U.S. secondhand market, which is a subset of the broader retail market, was estimated at $35 billion in 2021. It is expected to grow to more than $82 billion by 2026. (Details from the prospectus)

Savers Value Village, based in Bellevue, Washington, operates the largest for-profit thrift store chain in the U.S. and Canada, based on the number of stores. Savers Value Village runs 317 thrift stores under various brands in the U.S., Canada and Australia. The company buys secondhand clothes, shoes, accessories, bedding, towels and housewares – mostly from nonprofit thrift stores, where the goods have been donated. The average individual item sold at a Savers Value Village thrift store sells for under $5.00.

There’s silver and gold in secondhand clothes, judging from Savers Value Village’s financial statements. The company earned net income of $$62.59 million on revenue of $1.46 billion for the 12 months that ended April 1, 2023.

(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on’s website.)

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Disclosure: Nobody on the staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The staff does not issue advice, recommendations or opinions.

Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.