Potbelly More Than Doubles in NASDAQ Debut

NEW YORK (AP) -- Shares of sandwich maker Potbelly more than doubled in their Nasdaq trading debut today.

Potbelly extends the winning streak for foodies going public. In August natural and organic food store chain Sprouts Farmers Market more than doubled on its launch. Restaurant chain Noodles & Co.'s stock also more than doubled in its June debut.

Potbelly's stock soared $18.90 to $32.90 in morning trading. It was at $32.40 as of just before 1 p.m.

The company priced its initial public offering of 7.5 million shares at $14 per share, above the projected range of $12 to $13 each.

Potbelly Corp. raised $105 million in the offering, which is targeted to close Wednesday.

The Chicago company is selling about 7.3 million shares, while certain stockholders are selling 150,131 shares. The company won't receive any proceeds from the shares sold by the selling stockholders.

Potbelly is giving the underwriters a 30-day option to buy up to an additional 1.1 million shares.

The company said in a regulatory filing that it plans to use net proceeds to pay a previously declared dividend; to pay off debt and for working capital.

Potbelly began in 1977 as a small antiques store in Chicago. The original owner started offering sandwiches and homemade desserts to customers in an effort to boost sales.

As of September, the company had 288 sandwich shops in 18 states and the District of Columbia. Its franchisees have seven shops in the U.S. and 12 in the Middle East.

In 2012, Potbelly reported net income available to common stockholders of $13.6 million on revenue of $274.9 million.

Its shares are trading under the "PBPB" ticker symbol.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2669046, ~/Articles/ArticleHandler.aspx, 10/22/2014 5:58:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement