Outdoor clothing and equipment retailer Kathmandu has made a strong start on the NZX, opening trading at a 4.2% premium to its offer price.

The shares opened at $2.22 and gained another 3c to $2.25 shortly after 1pm today, compared to the $NZ2.13 offer price.

The offer price – set after an institutional book build – was at the lower end of the indicative price range outlined in the prospectus, but still raised more than $A330 million for Kathmandu’s private equity owners, who sold out completely.

On the ASX the shares opened eight cents above its issue price of $A1.70 and then climbed further to $A1.80.

The IPO, managed by Goldman Sachs JBWere and Macquarie Capital, was supported mainly by institutions and the bulk of the stock was sold across the Tasman.

Kathmandu has been owned by Goldman Sachs JBWere and Quadrant Private Equity after they purchased the business from founder and NBR rich-lister Jan Cameron in 2006.

Kathmandu currently has more than 80 stores in Australia, New Zealand and the UK. The company is forecasting sales in 2010 of $A197 million, or $NZ240 million, and earnings before interest, tax, depreciation and amortisation of $A47 million, or $NZ57 million.

The company is focusing on the Australasian retail scene over the next two to three years, with plans to open more than 70 new stores in Australia and New Zealand.

The Kathmandu float follows a disappointing $2 billion share sale of Australian retailer Myer, which closed its first day of trading at $A3.75 – below a listing price of $A4.10.