US-based Cava claims to have 263 outlets, up from 22 in 2016. Credit: Farragutful via commons.wikimedia.org.

Mediterranean fast casual restaurant chain Cava has raised $318m through an initial public offering.

It is claimed to be the biggest listing on the New York stock exchange in six weeks.

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Cava sold more than 14 million shares at of price of $22 per share after marketing them in the range of $19 to $20. This valued the company at $2.5bn.

The company had initially priced its common stock offering at $17 to $19, which would have valued the company at $2.12bn.  

Cava’s IPO was led by Jefferies Financial Group, JPMorgan Chase & Co and Citigroup.

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It began trading on New York Stock Exchange on 15 June under the ticker symbol of CAVA and closed trading on the day at $43.78, which is a 99% jump from the IPO price, thereby taking its market valuation to almost $4.9bn, reported Bloomberg.

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Cava CEO Brett Schulman told the media outlet: “The market’s always welcoming and ready for long-term sustainable growth stories, especially ones that are category-defining brands.

“That’s what we’re trying to do in the Mediterranean cultural cuisine category that we’ve established a clear dominant leadership position in.”

This development could be positive news for restaurant firms eyeing to go public.

CNBC reported that Brazilian steakhouse chain Fogo de Chão and Korean barbecue chain Gen Restaurant Group have confidentially filed regulatory papers.

According to the report, Panera Bread and Fat Brands’ Twin Peaks also plan to go public soon.

The Washington-based restaurant chain Cava narrowed its loss year-on-year. It posted a net loss of $2.1m on revenue of $203m during the 16 weeks ending on 16 April 2023, as against a loss of $20m on revenue of $159m during the same period of 2022.

In 2023, it operates 263 restaurants, compared to 22 in 2016.

It plans to use the funds from the IPO to open more than 1,000 restaurants within the next ten years.