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Chipotle Prices at $22 a Share

The casual dining chain raises about $134 million.
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A 7.9-million-share initial public offering of

Chipotle Mexican Grill

(CMG) - Get Chipotle Mexican Grill, Inc. Report

priced at $22 a share through underwriters led by Morgan Stanley and SG Cowen.

The company, a casual dining chain, was previously a wholly owned unit of

McDonald's

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. Chipotle sold 6.1 million shares in the deal, raising about $134 million, while McDonald's sold 1.8 million shares.

After the offering, McDonald's will have an 88% voting interest in Chipotle and a 69% economic interest. The decision to sell part of Chipotle in the public market was announced last fall.

Brisk demand materialized for the IPO, as the price came in above the $18-to-$20 range given Monday in an amended S-1 filed with the

Securities and Exchange Commission

. The company had previously estimated a range of $15.50 to $17.50 a share.

The 13-year-old Mexican food chain currently has about 480 stores and produced revenue of $471 million in 2004, up 49% from 2003,

Part of the proceeds to Chipotle will be used to pay down a $30 million line of credit with the parent.