Zoe’s Kitchen Inc., the parent company to the Zoës Kitchen chain, said on Monday that it plans to price shares at a range of $11 to $13 each for its proposed initial public offering.
Based on the midpoint of that range, the Plano, Texas-based operator and franchisor of 111 fast-casual restaurants would raise about $70 million. At the higher end, the IPO could generate up to $75 million with the planned sale of 5.8 million shares of common stock.
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The company intends to grant underwriters the option to purchase up to 874,999 additional shares.
Zoe’s Kitchen has applied to list on the New York Stock Exchange under the under the symbol ZOES. In announcing the planned IPO earlier this month, the company said it hoped to raise $80.5 million.
Founded in 1995 by Zoë and Marcus Cassimus in Birmingham, Ala., Zoe’s Kitchen is owned primarily by private-equity firm Brentwood Associates, which acquired the concept in 2007.
According to filings with the Securities and Exchange Commission, the company had revenues of $116.4 million for the Dec. 30-ended 2013 fiscal year, compared with $79.7 million the prior year. Average unit volumes were near $1.5 million, and same-store sales in 2013 increased 6.9 percent compared to the prior year, lapping a 13.4 percent increase in comparable sales in 2012.
Jefferies LLC, Piper Jaffray & Co., and Robert W. Baird & Co. Inc. are acting as joint book-running managers for the proposed offering. William Blair & Company LLC, Stephens Inc. and Stifel are acting as co-managers.
Contact Lisa Jennings at [email protected].
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