The hype is building for New York-based gourmet burger chain Shake Shack’s impending IPO. Only currently available in a limited number of cities worldwide, the fresh-ground-meat burgers at Shake Shack have been taking the country by storm over the last few years, and the legions of fans are apparently now looking for a piece of the action as the company gets ready to go public.
Shake Shack had originally noted that the price for its initial public offering shares was expected to be in a range from $14 to $16, but on Wednesday the firm said it had increased the estimate to $17 to $19 because of high demand.
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Shake Shack’s shares, which are scheduled to be priced on Thursday after the market closes, are expected to start trading on Friday on the New York Stock Exchange under the symbol “SHAK”.
Details on Shake Shack IPO
An IPO price of $18 per share would give the top notch burger chain a market cap of $674.5 million.
Until today’s announcement, the proceeds from the IPO could have totaled $92 million, including over-allotment option shares, but now Shake Shack could raise as much as $109.3 million with the offering. Of note, insiders and management will own close to 85% of the voting shares after the offering.
Shake Shack expanded from a hot dog stand in New York’s Madison Square Park, and is known for its Shackburgers, flat-top hot dogs and milkshakes. A cult following has grown up around the restaurant since it was founded by Daniel Meyer almost 14 years ago.
Private equity firm Leonard Green & Partners is the largest shareholder owning 26% of its common stock.
Meyer’s Union Square Hospitality Group holds another 21% of Shake Shack, and employee-owned hedge fund sponsor Select Equity Group LP also holds 12.3 percent.