NEW YORK (AP) -- Dave & Buster's Entertainment Inc. now anticipates approximately $123.8 million in gross proceeds from its initial public offering of common stock, down from a prior forecast of $150 million.
The Dallas company said in a regulatory filing on Monday that it plans to price its offering of about 7.7 million shares between $12 and $14 apiece.
In a previous filing with the Securities and Exchange Commission, Dave & Buster's did not disclose how many shares were expected to be in the IPO or an anticipated price range. It plans on giving the underwriters a 30-day option to buy up to an additional 1.2 million shares.
The company, which operates 59 arcade-style restaurants in 25 states and Canada featuring video games and games of skill, was publicly traded before, from 1997 to early 2006. It was acquired in March 2006 by Dave & Buster's Holdings Inc., which was controlled by affiliates of Wellspring Capital Partners III LP and HBK Main Street Investors LP. In 2010 Dave & Buster's Entertainment Inc., which is owned by Oak Hill Capital Partners III LP and Oak Hill Capital Management Partners III LP acquired Dave & Buster's Holdings.
Once the IPO is complete, the Oak Hill funds will own about 68.3 percent of Dave & Buster's stock, or 65.5 percent if the underwriters fully exercise their option. The funds will continue to own a majority of the voting power of Dave & Buster's stock.
Dave & Buster's says it plans to use the offering's net proceeds to lower its debt by about $80 million and to pay related premiums, interest and expenses.
Dave & Buster's plans to list on the Nasdaq under the "PLAY" ticker symbol.