Breaking News Bar
updated: 10/4/2013 5:03 PM

Investors gobble up Potbelly shares in debut

hello
Success - Article sent! close
  • Chicago-based Potbelly has raised $105 million from its initial public offering of 7.5 million shares. The restaurant operator, which sells sandwiches, salads and milkshakes, priced the offering at $14 per share, above the projected range of $12 to $13 each.

      Chicago-based Potbelly has raised $105 million from its initial public offering of 7.5 million shares. The restaurant operator, which sells sandwiches, salads and milkshakes, priced the offering at $14 per share, above the projected range of $12 to $13 each.
    Associated Press

 
Associated Press

NEW YORK -- Investors gobbled up shares of Potbelly Corp. Friday, and the sandwich chain's shares more than doubled in their debut on the Nasdaq.

The company's initial public offering was another win for food companies going public. Shares of Sprouts Farmers Market Inc. rose 123 percent in the natural and organic grocery's August IPO. Restaurant chain Noodles & Co.'s stock more than doubled in its June debut.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

Potbelly's stock rose $16.77, or 120 percent, to close at $30.77, after the IPO raised $105 million -- more than the company had expected.

Potbelly began in 1977 as a small antique store in Chicago. The original owner started offering sandwiches and homemade desserts to customers in an effort to boost sales.

As of September, the company had 288 sandwich shops in 18 states and the District of Columbia. Its franchisees have seven shops in the U.S. and 12 in the Middle East.

Its net income in 2012 came to $13.6 million on revenue of $274.9 million.

In the IPO, 7.5 million shares priced at $14 each, above the revised projected range of $12 to $13. The company had initially expected shares to price from $9 to $11 each. Most of the stock came from the company. Early investors also sold about 150,000. Potbelly won't receive any money from the selling stockholders.

Potbelly plans to use the money from the IPO to pay a previously declared dividend, to pay off debt and for working capital.

Its shares now trade under the "PBPB" ticker symbol.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.
    help here