Shoe Pavilion Files for $18-Million IPO

Shoe Pavilion Inc. filed to sell almost 29% of its shares in an $18-million initial public offering. The Richmond-based company, which owns 56 retail stores that sell off-price, brand-name footwear, plans to sell 1.8 million common shares for $10 each, according to a registration statement filed with the Securities and Exchange Commission. That price would give Shoe Pavilion’s 6.3 million shares to be outstanding after the IPO a market value of $63 million. Company founder and Chief Executive Dmitry Beinus, a 45-year-old former Nordstrom Inc. shoe department employee, owns all 4.5 million shares not being offered to new investors, giving him a 71% stake worth $45 million at the expected IPO price, according to the filing. The company expects to raise about $15.9 million after expenses in the IPO, with $6.8 million slated to repay its credit-line debt. The company would use the rest to pay Beinus back earnings, finance store openings and for general purposes. Kasper & Co. would underwrite the sale of shares, which Shoe Pavilion plans to have trade on Nasdaq under the symbol SHOE, according to the filing.