Friday 30 January 2015

Shake Shack prices IPO at $21 a share

Shake Shack prices IPO at $21:Shake Shack has priced its IPO above range at $21 per share, reports CNBC's Dominic Chu. </p>
Hamburger joint Shake Shack priced its U.S. initial public offering at $21 a share on Thursday.

The company will offer 5 million shares on on Friday, and another 750,000 Class A shares could be made available at the underwriters' discretion. Selling 5 million shares would raise $105 million and value the company at more than $700 million.

The price was originally expected to come in between $14 and $16 a share, but that was raised to a range of $17 to $19 this week.
Shake Shack applied to have its common stock listed as "SHAK" on the New York Stock Exchange.

Read More Shake Shack raises IPO terms to 5.75M shares

The chain operates 63 stores domestically and internationally. Shake Shake's total revenue in 2013 topped $82 million, up from $19.5 million in 2012, according to a SEC filing.
Danny Meyer, founder of the Union Square Hospitality Group and Shake Shack, could net $140 million from the burger joint going public. Meyer owns 21 percent of the company, which equates to 7.4 million shares of Class B stock, according to regulatory filings.
JPMorgan Chase and Morgan Stanley are among the lead underwriters for the IPO.
Sarah Whitten

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