Potbelly IPO: Stock Doubles In Value
Potbelly’s IPO raised $105 million on Friday morning. Stock more than doubled in value on the first day of trading, exceeding all hope and expectations. The stock was initially offered at $14 per share. It has now climbed to more than $32.
The original Potbelly Sandwich Shop was located on Lincoln Avenue in Chicago, Illinois. The cafe was built around an antique shop, which was founded in 1977. The owners offered simple, but tasty, sandwiches in a unique atmosphere.
The cafe soon became a popular destination for locals and tourists. Offering hearty sandwiches, homemade desserts, and live music, the shop soon gained the attention of entrepreneur Bryant Keil.
Keil purchased the original sandwich shop in 1996 with dreams of expansion. Nearly 20 years later, Potbelly has expanded to 286 locations nationwide. Keil’s business has also expanded overseas with 12 locations in the Middle East.
As reported by New York Times, the sandwich shop reported sales of $146.9 million in the first half of 2013. Actual profit was over $16 million.
The IPO was led by Bank of America Merrill Lynch and Goldman Sachs. The stock is trading on the Nasdaq exchange under the ticker symbol PBPB.
As reported by Forbes, this has been a busy week for IPOs. Burlington Stores and Remax both saw double-digit gains with their stock market debuts. Empire State Realty Trust made minimal gains with their IPO.
On Thursday, Twitter announced plans for their much-anticipated IPO. The social media giant reported revenue of $253.6 million. They expect to raise close to $1 million with their IPO.
IPO research firm Renaissance Capital says the US market can expect to see “record levels” in the US IPO market. However, they warn investors to be cautious:
“We caution that the US IPO market remains captive to external events: volatility arising from US budgetary concerns and the debt-ceiling debate could stretch IPO timelines.”
Potbelly has experienced some of the record levels with their initial offering. The small Chicago sandwich shop continues to expand their presence nationwide.
[Image via Flickr]
