initial public offerings (IPOs) trading on American exchanges

Thursday, June 8, 2023

Fast-casual Mediterranean restaurant chain Cava aims for $2.12 billion valuation in U.S. IPO

  • Cava prices IPO at $17-$19 a share, with top end value of $2.1B;  looks to raise as much as $274M in offering
In a letter written by co-founder and CEO Brett Schulman, the company said it currently has 263 restaurants and should have 300 by the end of 2023. 

Cava Group, which operates a chain of Mediterranean fast-casual restaurants in the United States, said on Monday it is aiming for a valuation of up to $2.12 billion in its U.S. initial public offering.

The company intends to sell roughly 14.44 million shares priced between $17 and $19 apiece in the offering, aiming to raise up to $274.4 million based on the top end of the proposed range.

Although Cava’s revenue has grown at a compound annual growth rate of 52.2% since 2016, the company has been operating at a loss for several years.

Cava was founded by three friends with Greek roots — Ted Xenohristos, Ike Grigoropoulos and Dimitri Moshovitis. The group opened its first restaurant Cava Mezze in Rockville in 2006 and started selling its signature dips and spreads in local grocery stores within two years.

J.P. Morgan and Jefferies are acting as joint lead book-running managers of the offering.

The company plans to list on the New York Stock Exchange under the symbol “CAVA.”

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