Wet Seal Retail Chain Files for 1st Public Offering : Securities: The fast-growing Irvine company expects to raise $30 million, which it will use to repay its debt and expand into new markets.

Wet Seal Inc., a fast-growing chain of young women’s apparel stores, is hoping to make a big splash on Wall Street with its first offering of stock to the public.

In a filing Thursday with the Securities and Exchange Commission, the Irvine-based retailer said it plans to raise up to $30 million by offering 2.5 million shares of common stock. The company said it will use the money to repay debt, upgrade its computer system, increase distribution facilities and build more stores.

Founded on Balboa Island, Wet Seal was purchased for $2 million by Canadian retailer Suzy Shier in 1984, when there were only 17 stores. The company, which has since grown to 79 stores, has been regarded as somewhat of a phenomenon within the industry. Shier transformed a money-losing chain of swimwear shops into a profitable chain of stores featuring sportswear and junior apparel.

Wet Seal officials declined to discuss the offering, citing SEC rules that restrict promotional publicity while an offering is pending. The company said the offering prospectus will be available in early June.

Wet Seal operates 72 stores in California, four in Arizona, two in Hawaii and one in Nevada. The company plans to open more than 20 stores this year, including its first in Florida.

The chain’s growth has come despite generally sluggish conditions in the retail industry.

Wet Seal’s stores are lavishly equipped to appeal to young, affluent consumers. Stores have custom racks, flashy high-style mannequins and wall monitors that display rock videos. These features typically drive the cost of opening a Wet Seal store to double the industry average.

But even with the additional capital from a public offering, Wet Seal faces continued competition from retailers such as Contempo Casuals, the Gap and Clothestime that could dampen its ability to keep growing at such a quick rate.

Pat Murphy, a partner at the Ernst & Young accounting firm in Costa Mesa, said that stores catering to young women could face more difficult times as the nation’s population gets older.

But while there may be fewer teen-agers, she noted that young women often have significantly more to spend than they did 20 years ago.

Wet Seal operates 13 stores in Orange County, including those at prominent malls.

According to the SEC filing, holders of the company’s Class A shares will control about 11.8% of the voting power of all shareholders. A group of Class B stockholders will control the rest of the voting power.

Wet Seal said the New York-based investment firms First Boston Corp. and Bear, Stearns & Co. Inc. will underwrite the offering.