Shares of Teavana soar on trading debut
The stock price of Teavana, the largest premium tea retail chain in the US, has shot up on its first day of trading. Shares of Teavana, priced at $17, opened more than 60% higher at $28.95 on the New York Stock Exchange last Thursday. Experts say that investors are attracted to companies like Teavana, because they are growing incredibly fast. The Atlanta-based retailer has tripled the number of stores in the last 5 years. The company now owns 161 stores in 35 states and has more than a dozen franchise outlets in Mexico. According to a recent filing, Teavana plans to have "at least 500 stores" in the US. It has recorded profits of $12 million on sales of $124.7 million last year, with the average transaction amounting to $36.