Carl’s Jr. and Hardee’s parent CKE Inc. on Monday announced the terms of its planned initial public offering of 13.3 million shares of common stock priced between $14 and $16 per share.
CKE, which is based in Carpinteria, Calif., has applied to list its common stock on the New York Stock Exchange under the symbol CK.
About half, or 6.7 million, of the shares are being offered by the company, and the other 6.7 million are being offered by CKE Inc.’s majority shareholder Apollo Funds, managed by an affiliate of Apollo Management LP.
Net proceeds will be applied in part to paying down debt, as well as general corporate purposes, the company said.
CKE was a public company for 29 years before being taken private by Apollo Management in a $700 million deal in 2010.
The company filed for IPO of up to $100 million in May, but last week CKE said it expected to raise as much as $230 million.
CKE is among a number of restaurant IPOs in recent weeks. Last week, Chuy’s Holdings Inc. and Del Frisco’s Restaurant Group made their respective debuts on the public market. Ignite Restaurant Group, which owns Joe’s Crab Shack and Brick House Tavern + Tap, went public in May with an $83.8 million offering.
Bloomin’ Brands Inc., parent to the Outback Steakhouse chain, Bonefish Grill, Carrabba’s Italian Grill and Fleming’s Prime Steakhouse, is reportedly scheduled to trade on the Nasdaq beginning Aug. 8.
Last week Bloomin’ Brands set its IPO price range for 21 million shares at $13 to $15 per share. Previously known as OSI Restaurant Partners Inc., the company is owned by affiliates of private-equity firm Bain Capital Partners LLC and Catterton Management Co.
For its first quarter ended May 21, CKE reported net income of $9.5 million, compared with a loss of $2.6 million a year earlier. Revenues were up 3 percent to $412 million, and blended same-store sales for company-owned locations were up 2.6 percent.
CKE operates or franchises 3,263 restaurants under the Carl’s Jr. and Hardee’s brands in 42 states and 25 foreign countries.