By
Mayowa Adebajo
May 9th, 2024
With a total of 111 million outstanding shares, Cava’s valuations stand at $2.45 billion at a price of $22 per share.
On Wednesday, June 14, Cava – the Mediterranean fast-casual restaurant chain – priced its initial public offering (IPO) at $22 per share, much above the previously stated range.
Cava said that it sold a total of 14.4 million shares at a price of $22 per share raising a total of $318 million. Earlier this week on Monday, the company raised its pricing expectations in the range between $19 to $20 per share.
At a price of $22 per share, the company’s valuations stand at roughly $2.45 billion. This is considering the outstanding share count of more than 111 million shares. Shares of Cava will debut on the public market on Thursday, June 15, under the ticker symbol of CAVA on the New York Stock Exchange.
CAVA plans to use the money raised from the offering to open new restaurants in the future. Any remaining funds will be used for general company needs, which could include paying back loans used for building a new production facility in Verona, Virginia.
JPMorgan and Jefferies are working together as main managers for the offering, and they are joined by Citigroup as the representatives for the underwriters. Citigroup and Morgan Stanley are also working together as book-runners. Piper Sandler, Baird, Stifel, and William Blair are additional book-runners for the offering.
Founded back in 2006, Cava opened its first location in 2011 and now operates over 260 restaurants across multiple regions. With its build-your-own-entree style of dining, the company has drawn frequent comparisons to Chiptole Mexican Grill.
For the year 2022, Cava reported net sales of $564.1 million, up 12.8% from the year prior. however, it also reported a net loss of $59 million. This was wider than the net loss of $37.1 million reported in 2021.
More About Cava before Its IPO
CAVA is a popular Mediterranean fast-casual restaurant brand known for its delicious and healthy food options. They combine traditional Mediterranean flavors with a modern twist to create a unique dining experience.
CAVA values inclusivity and believes that food brings people together. They strive to provide a diverse menu that caters to different tastes and preferences, offering flavorful and nutritious meals without sacrificing taste.
It will be interesting to see at what price CAVA debuts on Wall Street during Thursday’s trading session.