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