NEW YORK (AP) — Shares of Restoration Hardware jumped in its first day of trading, as investors decided to take a bet on a familiar retail name and the gradual housing recovery.
Shares rose $7.10, or 29.6 percent, to close at $31.01 Friday on the New York stock exchange. The home decor retailer and its shareholders raised $124 million, selling 5.2 million shares for $24 each.
"It's been quite well received," said Sam Hamadeh, CEO of PrivCo LLC, which researches private companies. "It's reasonably priced and a well-known brand."
In addition, the housing market is slowly strengthening. The Standard & Poor's/Case Shiller index reported Tuesday that national home prices rose 2 percent in August, the third straight monthly increase. And new home sales jumped in September to the highest annual pace in the past two and a half years.
Restoration Hardware is one way investors could capitalize on the recovery, Hamadeh said.
"You get familiar brand name plus an IPO bet on the housing market," he said.