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Cava boosts IPO valuation to $2.23 bln

Cava boosts IPO valuation to $2.23 bln

U.S. fast-casual restaurant operator Cava Group Inc. announced on Monday that it plans to seek a valuation of up to $2.23 billion in its upcoming initial public offering (IPO) in the United States.

The initial suggested range for the common stock offering price was $17–$19 per share, which would have put the company’s valuation at $2.12 billion.

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Assuming the high end of the current range, Cava will raise $289 million from the sale of 14.44 million shares, up from $274.4 million last week.

On Thursday, the company is scheduled to begin trading under the ticker symbol “CAVA” on the New York Stock Exchange.

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Americans are increasingly willing to spend more on services than on things, thus the proposed listing coincides with a period of robust sales for quick-service companies.

With the IPO market showing signs of warming after the blockbuster offerings of Kenvue (KVUE.N) and Acelyrin (SLRN.O) last month, a successful IPO by Cava might set the tone for listings of other companies striving to turn profitable.

The net loss for Cava in fiscal 2022 was $59 million, up from $37.4 million the year before.


What is Cava?

It is a Mediterranean fast-casual restaurant chain that was founded in 2011. The company has over 100 locations in the United States.

Why did Cava boost its IPO valuation?

It boosted its IPO valuation to $2.23 billion after it received strong demand from investors. The company had originally planned to raise $500 million in its IPO, but it ended up raising $600 million.

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