Teen retailer Tilly's shares surge in market debut

Tilly's Inc's shares opened 23 percent above their IPO price in their market debut, as investors looked to grab a piece of the fast growing specialty retailer in an otherwise weak IPO market.

On Thursday, Tilly's priced its IPO of 8 million shares at $15.50, raising $124 million, above its expected range of $11.50 to $13.50 per share.

The Irvine, California-based company sold 7.6 million shares, while stockholders sold 400,000 shares.

Proceeds from the offering are being used to pay current shareholders of World of Jeans & Tops through which Tilly's sells its merchandise.

Net sales in 2011 increased 20 percent to $400.6 million. Net income jumped 41 percent to $34.3 million. Comparable store sales rose 10.7 percent in 2011, after a 6.7 percent increase in the prior year.

Tilly's operates 140 stores in 14 states across the United States. The company sells West Coast-inspired apparel, footwear and accessories including brands like Billabong International Ltd, Quiksilver Inc and Roxy.

Shares of the company were trading up 20 percent at $18.60 in early trade on Friday. Tilly's was among the most traded stocks on the New York Stock Exchange.