NEW YORK (TheStreet) -- Shares of Fogo de Chao (FOGO) are soaring 30% to $26 in its market debut today on the New York Stock Exchange after its IPO.
Fogo de Chao is a Brazilian steakhouse, or churrascaria, which has specialized for over 35 years in fire-roasting high-quality meats using the Southern Brazilian cooking technique of churrasco.
Fogo, the fourth restaurant group to go public on a U.S. exchange this year, priced its initial public offering of 4.4 million shares at $20 a share. This is above the company's previous expectation of $16 to $18. The offering includes a 30-day option for underwriters to purchase up to an additional 661,764 shares.
Currently, Fogo has an implied valuation of $545 million, The Wall Street Journal reports.
Offering fresh, affordable prices with the sit-down, full-bar features, the steakhouse straddles the fast-casual and more traditional dining spaces, according to the Journal.
The chefs are mostly from Brazil, and Fogo has a cash-flow advantage over its peers, as labor costs are minimized, said Kathleen Smith, principal at Renaissance Capital, which manages IPO-focused exchange-traded funds.
Last year, Fogo reported revenue of $262 million, up 20% from a year earlier, the Journal added.
More than 6.7 million shares were changing hands as of 1:14 p.m.