Potbelly Corp (NASDAQ:PBPB) shares jumped about 140% on its first day of going public. The stock was initially priced at $14, well above the company’s projected range of $12 to $13 per share. To celebrate the IPO on NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), Potbelly CEO Aylwin Lewis rang the Opening Bell. Shares of Potbelly are trading at Nasdaq under the ticker symbol “PBPB.”
Potbelly follows the path of Noodles and Sprouts
The stock surprised the markets by opening at $28.79, and it kept soaring higher in the early trading. The Chicago-based neighborhood sandwich chain is selling 7.35 million shares, while some other stakeholders are offloading 150,131 shares during the public offering at $14 per share.
Potbelly Corp (NASDAQ:PBPB) is just another success story of quick service restaurant IPOs. In August, shares of Sprouts Farmers Market Inc (NASDAQ:SFM), an organic food store chain, more than doubled on its debut. Another restaurant chain Noodles & Co (NASDAQ:NDLS) saw its stock more than doubling at its June IPO.
Potbelly’s history of rapid growth
Potbelly first opened as an antique shop on Lincoln Avenue in 1977, according to the Chicago Tribune. The shop used to sell desserts and sandwiches on the side. But the original owner sold the shop to entrepreneur Bryant Keil in 1996. Keil began to open new shops aggressively. By 2005, Potbelly Corp (NASDAQ:PBPB) had 100 shops, and grew to 200 in 2008. Currently, the company has 286 shops across 19 states in the country. Potbelly has also franchised 12 shops in the Middle East. The company said each of its shop reflects local culture. Potbelly aims to be “The Best Place For Lunch.”
According to the 2012 Jumpstart Our Business Startups Act, Potbelly Corp (NASDAQ:PBPB) is defined as an “emerging growth company.” So, the company is subjected to limited reporting requirements. It filed for an IPO confidentially in November 2012. The initial public offering is managed by Goldman Sachs Group Inc (NYSE:GS) and Bank of American Merrill Lynch.
