The company raised about $90 million from the
IPO of 5 million Class A shares.
The offering was priced above the expected price range of $14 to
The company, which operates the fast casual Habit Burger Grill
chain of restaurants, offers charburgers, sandwiches and milk
The fast casual restaurant market consists of establishments
where customers pay at the counter for food items that cost
The fast casual segment generated sales of about $34.5 billion
in 2013, representing an 11.3 percent increase from 2012, the
company said in its filing, citing market research firm
Founded in 1969 in California, the chain has 98 restaurants in
four U.S. states. Its shareholders include private investment
firm KarpReilly LLC.
The company reported a 43 percent increase in revenue to $120.4
million for the year ended Dec. 31. Net income nearly doubled to
$5.8 million during the period.
The company joins the list of casual dining chains, including El
Pollo Loco Holdings Inc and Zoe's Kitchen Inc, that have listed
The IPO also comes ahead of an expected listing by Shake Shack,
the fast-food restaurant chain that has developed a cult
following for its "Shackburgers" and milkshakes.
Habit Restaurants plans to use the IPO proceeds to repay debt.
The company had $13.6 million total debt as of Sept. 30.
Piper Jaffray, Baird and Wells Fargo Securities were the lead
underwriters of the offering.
(Reporting by Amrutha Gayathri and Sai Sachin R in Bangalore.
Editing by Andre Grenon)
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