The Chicago-based sandwich chain raised $105 million by selling a portion of its shares to the public on Friday. The stock listed on the Nasdaq on Friday morning. Shares were soaring 137% to $33.15, at last check, above its offering price of $14 a share. Shares opened at $28.66, a gain of 119% above the offering price.
Potbelly said late Thursday it would price 7.5 million shares of common stock at a price of $14 a share, above the expected range of $12 to $13 a share (which was raised this week from the original estimate range of $9 to $11).
The company is selling 7.35 million shares of common stock, with outside shareholders selling 150,131 shares as part of the offering. Potbelly has granted its underwriters a 30-day option to purchase up to 1.12 million additional shares at the IPO price less the underwriting discount.
Bank of America Merrill Lynch and Goldman Sachs are acting as joint book-running managers for the offering. Robert Baird, William Blair and Piper Jaffray are acting as co-managers.
Investors have been eager to grab shares of the growing chain. Potbelly sits in the fast-casual dining category, a strong sub-sector performer in the overall restaurant market. Potbelly has 295 stores, most of which are company owned.
Also see: Investors Hungry for Potbelly IPO
Despite the demand, Potbelly said in its S-1 filings with the Securities and Exchange Commission that it plans to pay out $49.9 million in the form of a cash dividend to selling stockholders.