Updated: Friday, 22 Oct 2010, 10:09 PM EDT
Published : Thursday, 21 Oct 2010, 9:29 AM EDT
FORT WAYNE, Ind. (WANE) - Vera Bradley, Inc. announced Thursday that it had priced its initial public offering of 11,000,000 shares of its common stock at $16.00 per share on Wall Street . By the time the stock market closed that day, it was being traded at $24.85 per share. It closed at $26.90 per share on Friday, continuing its success.
According to Vera Bradley, the Fort Wayne-based company's shares were listed on the Nasdaq Global Select Market under the symbol “VRA” and began trading Thursday morning at 10:30 a.m.
Vera Bradley stock opened at $23 per share Thursday. It peaked at almost $30 per share Thursday afternoon. By the time it closed Thursday, the stock was up 55 percent more than its initial pricing.
"The response we got from investors was very positive," said Vera Bradley CEO Michael C. Ray. "Many of the investors were customers of the brand."
NewsChannel 15 sat down with the director of IPFW's Center of Economic Education John Kessler Thursday. He said the company's skyrocketing stocks are a sign Vera Bradley is ready to expand.
"This will be a good thing for them because they will be able to get access to cheaper money," said Kessler. "That will allow them to build and grow and expand and really become more profitable in the future."
If you're looking to buy Vera Bradley stock, Kessler said don't expect the company to continue increasing at this drastic rate.
"I wouldn't expect that to continue for the long-term," said Kessler. "It's going to definitely balance out eventually as people get a feel for what the company's value is."
Officials with Vera Bradley were excited about the company's stock-market success Thursday. Ray released this statement:
"Today is a tremendous milestone for Vera Bradley and one that is a tribute to the collective efforts of everyone within the company. We're especially proud of the unique culture our co-founders (Barbara Bradley Baekgaard and Patricia R. Miller) established 28 years ago. As we begin the next chapter as a public company, we will continue to uphold our commitment to our employees and the Fort Wayne community. We're grateful for the support and encouragement NE Indiana has shown Vera Bradley over the years and are proud to call Fort Wayne home." Michael C. Ray, Vera Bradley Chief Executive Officer.
Friends Barbara Bradley Baekgaard and Patricia R. Miller founded Vera Bradley in 1982. Vera Bradley is sold through 3,300 specialty stores as well as 35 Vera Bradley stores nationwide. Vera Bradley accessories, handbags, travel and paper & gift items have recently been spotted on: Desperate Housewives, Brothers and Sisters, Entourage, Modern Family and in over 20 feature-length films.