Cava’s IPO price is $22 per share, exceeding the anticipated range.

On Wednesday, June 14, the Mediterranean fast-casual restaurant chain Cava priced its initial public offering (IPO) at $22 per share, which is much higher than the previously announced range.

Cava sold a total of 14.4 million shares at a price of $22 per share, raising a total of $318 million. Earlier this week, on Monday, the company had increased its pricing expectations to a range of $19 to $20 per share.

With a price of $22 per share, the company’s valuation is approximately $2.45 billion, taking into account more than 111 million outstanding shares. Cava’s shares will debut on the public market on Thursday, June 15, under the ticker symbol CAVA on the New York Stock Exchange.

Cava plans to use the money raised from the offering to open new restaurants in the future. Any remaining funds will be used for general company needs, such as paying back loans used to build a new production facility in Verona, Virginia.

JPMorgan and Jefferies are the main managers for the offering, and they are joined by Citigroup as the representatives for the underwriters. Citigroup and Morgan Stanley are also working together as book-runners. Piper Sandler, Baird, Stifel, and William Blair are additional book-runners for the offering.

Founded in 2006, Cava opened its first location in 2011 and now operates over 260 restaurants across multiple regions. The company’s build-your-own-entree style of dining has drawn frequent comparisons to Chipotle Mexican Grill.

In 2022, Cava reported net sales of $564.1 million, up 12.8% from the previous year. However, it also reported a net loss of $59 million, which was wider than the net loss of $37.1 million reported in 2021.

More About Cava before Its IPO

Cava is a popular Mediterranean fast-casual restaurant brand known for its delicious and healthy food options. They combine traditional Mediterranean flavors with a modern twist to create a unique dining experience.

Cava values inclusivity and believes that food brings people together. They strive to provide a diverse menu that caters to different tastes and preferences, offering flavorful and nutritious meals without sacrificing taste.

It will be interesting to see at what price Cava debuts on Wall Street during Thursday’s trading session.