UPDATE 3-Vera Bradley, Bravo Brio rise in debuts

Shares of handbag maker Vera Bradley Inc (VRA.O) rose more than 55 percent above their initial public offering price in their market debut on Thursday, as investors bet on the company's growth prospects. Vera Bradley shares closed at $24.85, or up 55.3 percent from their $16 IPO price on the Nasdaq. At one point they reached $29.74. Separately, shares of Bravo Brio Restaurant Group Inc (BBRG.O), which owns and operates Italian restaurants in the United States, closed at $15.95, or 13.9 percent above their IPO price on Nasdaq. Vera Bradley on Wednesday sold 11 million shares for $16 each, raising about $176 million. It had planned to sell shares for $14 to $16 each. Underwriters on the Vera Bradley offering were led by Baird and Piper Jaffray. Vera Bradley, which sells handbags and accessories, has posted growth in both revenue and profit, and is on track to open more stores. The company's net revenue grew 25.9 percent to $165.1 million from a year earlier in the six months ended July 31. Net income nearly doubled to $26 million in the same period. The Fort Wayne, Indiana-based company sells its wares through independent retailers, its own stores and its Website. At the end of July it had partnerships with 3,300 independent retailers, as well as 31 full-price stores, two outlets, and a Website. "From a revenue perspective we like that they have just 33 stores open as of July 31. There's ample room for growth," said Pete Wahlstron, an equity analyst who specializes in consumer companies at research house Morningstar. The company said in its prospectus that the U.S. market can support 300 stores. It said it will open nine full-price stores and three outlet stores in the 2011 fiscal year, 14 to 16 new stores in 2012, and 14 to 20 new stores annually in the next five fiscal years. New full-price stores are expected to break even in less than 18 months, the company said. "It's a pace we can manage," Chief Executive Officer Michael Ray said in an interview. Ray added that now is a good time to open new stores, and Vera Bradley has been able to secure better locations in malls due to depressed real estate prices.