Jersey Mike’s begins IPO road show, targets valuation of up to nearly $8B
Jersey Mike’s Subs has begun the road show for its proposed initial public offering (IPO), with the sandwich chain looking to raise up to nearly $1.1 billion through the sale of Class A common stock.
The company is offering about 43.5 million shares priced between $21 and $25 each, which would generate gross proceeds of approximately $913 million to $1.1 billion.
Based on the midpoint of the range, Jersey Mike’s would have a market capitalization of roughly $7.3 billion, while the top end of the range would value the company at about $7.9 billion.
Jersey Mike’s plans to list its Class A common stock on the New York Stock Exchange under the ticker symbol ‘JMKE.’ The company has not disclosed when shares are expected to begin trading.
The offering includes newly issued shares as well as shares sold by existing investors. Jersey Mike’s expects to issue 13.8 million new shares, while existing shareholders, including Blackstone and the Abu Dhabi Investment Authority, are selling approximately 29.7 million shares. Underwriters will also have an option to purchase an additional 6.5 million shares.
Following the IPO, Blackstone is expected to retain majority voting control of the company, which will operate as a controlled company. Jersey Mike’s said it expects net proceeds of about $301 million at the midpoint of the offering, which will be used for general corporate purposes, including strengthening its balance sheet and potentially reducing debt.
The IPO could become the largest restaurant industry public offering in two decades, surpassing Krispy Kreme’s roughly $500 million IPO in 2021, according to data from Aaron Allen & Associates.
Jersey Mike’s operates nearly 3,300 locations across the US and is the second-largest US sandwich chain by store count behind Subway.
