The Best IPOs to Buy for the Rest of 2017: BJ’s Wholesale Club
IPO Timetable: Second half of 2017 (estimated)
BJ’s Wholesale Club is a membership warehouse club — a la Costco Wholesale Corporation (NASDAQ:COST) — with a presence in the eastern part of the U.S., sporting 210 locations and more than 25,000 employees.
Leonard Green & Partners and CVC Capital Partners took BJ’s Wholesale Club private in late 2011 via a $2.8 billion deal. As a result, there are no publicly available financials. However, according to estimates from Forbes, BJ’s Wholesale Club’s revenues hit $10.88 billion last year.
Primary locations, which are roughly 114,000 square feet, have a wide assortment of offerings, ranging from groceries and home goods to electronics and cleaning supplies. BJs.com is also a critical part of the company that offers exclusive discounts.
The timing for a BJ’s Wholesale Club IPO is about as good as it will get, considering that Costco has been churning out nice returns for investors, at about 85% over the past five years. By comparison, Target Corporation (NYSE:TGT) is off 4% and Wal-Mart Stores Inc (NYSE:WMT) is up 17%.
The Wall Street Journal reported in February that BJ’s is preparing for an IPO that could come in the second half of 2017.