Sandwich shop chain Potbelly Corp. (NASDAQ: PBPB) held its initial public offering (IPO) Friday morning, selling 7.5 million shares at $14 a share. While the offering price is well above the original price range of $9 to $11, and higher than the revised price range of $12 to $13, shares opened at $28.66 and shot up more than 125% to top $31 after the first few minutes of trading.
The company sold some 7,362,166 shares of its common stock, and selling stockholders are selling the remaining IPO shares. Potbelly will not receive any sale proceeds from the shares sold by the selling stockholders. The underwriters, which include Bank of America Merrill Lynch, Goldman Sachs, R.W. Baird, William Blair and Piper Jaffray, have a 30-day option to purchase another 1.125 million shares.
As of September 23, 2013, Potbelly had a domestic base of 295 shops in 18 states and the District of Columbia, for a 13% increase over the past 12 months. Of these, the company operated 288 shops and franchisees operated only seven shops. In addition, there are 12 franchised shops in the Middle East.
At last check, shares were up more than 130% at $32.25. As of 10:30 a.m., we have already seen 8 million shares trade hands. Here was our company comment on Twitter:
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
