- CAVA shares soared during the first day of trading on the NYSE.
- The IPO price of $22 was above the company’s range.
- The company said it will use the money raised to open more locations.
It was a stellar debut for Mediterranean fast-casual restaurant chain CAVA as shares soared on their first day of trading on the stock exchange. New York Stock Exchange (NYSE).
CAVA appreciated it initial public offering (IPO) last night at $22 a share, above a range of $19 to $20. The sale of 14.4 million shares raised nearly $318 million and listed its market capitalization approximately $2.45 billion. However, when the shares began trading today, the price nearly doubled, opening at $42 each and rising to nearly $48 during the session.
CAVA said it will use the proceeds from the IPO to expand the number of locations it operates. The chain currently has 263 restaurants in 22 states and the District of Columbia. Its goal is to have 1,000 by 2032.
Analysts suggest the success of CAVA may help boost demand for IPOs, which has been falling for more than a year due to high interest rates and adverse financial market conditions.