Restaurant chain CAVA Group (CAVA) priced above the upwardly revised range, the first major IPO to do so since late 2021, raising $318 million at a $2.6 billion market cap. CAVA soared 99% in its debut and finished the week up 73%. The move was one of the best first-day performances for a $100+ million IPO in the past two years. CAVA is a leading national Mediterranean chain, with more than twice the locations of its next largest competitor in the category. The company is known for expanding its footprint with the 2018 acquisition of Zoes Kitchen,
The company owned and operated 263 CAVA restaurants across 22 states and DC as of 4/16/23 (including conversions). CAVA believes its fast-casual concept can support 1,000 locations in the next 10 years, though expansion will become more extensive once all Zoes conversions are complete.
- Underwriters: J.P. Morgan Jefferies Citi Morgan Stanley Piper Sandler Baird Stifel William Blair Capital One Securities Blaylock Van Drexel Hamilton
- Headquarters Washington, DC, United States
- Founded 2006
- Employees 7,750
- Website: Home | CAVA
CAVA soared 99% in its debut, and still finished the week up 73%.
CAVA Group Joins Biggest First Day Pops of $100 Million IPO
Renaissance Capital on the debut said; Excluding idiosyncratic outlier HKD, four other IPOs have popped more than 99% in the past two years, all of which went public in 2021: German solar-powered vehicle developer Sono Group (SEV), biotechs Icosavax (ICVX) and DICE Therapeutics (DICE), and digital physicians network Doximity (DOCS). Of these, only two currently trade above issue (DICE and DOCS); Sono Group, which led with a 155% first-day gain, is the worst performer of the group, down nearly 98% from offer.
US IPO Weekly Recap: 1 SPAC, 3 IPO Week
Three companies priced IPOs this past week along with the highlight of the week restaurant chain CAVA Group (CAVA). Holdover Azitra (AZTR) finally priced and finished down 1%. Snack brand BranchOut Food (BOF) priced and finished down 26%. We also had one SPAC, ESH Acquisition Priced, (ESHAU) led by industry veterans targeting entertainment, sports, and hospitality.
BranchOut Food (BOF)
BranchOut Food (BOF) priced at the low end to raise $7 million at a $24 million market cap. It had plans to raise $8 million at a $27 million market cap. BranchOut manufactures and markets plant-based dehydrated foods. Very small and highly unprofitable, the company markets and sells its products through physical retail channels like grocery chains and natural food outlets, on its website, and on Amazon.
- Underwriters: Alexander Capital, Spartan Capital Securities
- Headquarters Bend, OR, United States
- Founded 2017
- Employees 4
- Website: Avocado Chips, Banana Bites & Pineapple Chips by BranchOut – BranchOut Food
BranchOut finished down 26%.
Dermatology biotech Azitra (AZTR), priced at the midpoint to raise $8 million at a $65 million market cap. AZTR had lowered the proposed deal size for its upcoming IPO to raise $8 million by offering 1.5 million shares at a price range of $4.50 to $5.50. The company had previously filed to offer 2.4 million shares at the same range to raise $12 million at a $70 million market cap. At the midpoint, Azitra will raise 38% less in proceeds than previously anticipated.
Azitra’s pipeline is currently led by ATR-12, a genetically modified strain of Staphylococcus epidermidis being developed for orphan disease Netherton syndrome. ATR-12 is expected to enter a Phase 1b trial in the 1H23. Azitra also has a joint development agreement with Bayer to investigate and develop two strains of bacterial microbes for consumer/cosmetic products.
- Underwriters: ThinkEquity
- Headquarters Branford, CT
- Founded 2014
- Employees 10
- Website: Home – Azitra (azitrainc.com)
Source: Renaissance Capital, TradersCommunity
From The TradersCommunity Research Desk