Habit Burger IPO could raise $80MHabit Burger IPO could raise $80M

The Habit Restaurants Inc., parent of the Habit Burger Grill chain, expects to price its initial public offering between $14 and $16 per share, which could raise as much as $80 million, the company said Monday.

According to filings with the U.S. Securities and Exchange Commission, Habit Restaurants Inc. plans to issue 5 million shares of Class A common stock.

Following completion of the offering, affiliates and certain members of the board will hold most of the issued and outstanding Class B common stock, and will control a majority of the combined voting power, creating a “controlled company.”

The Irvine, Calif.-based chain has applied to list on the Nasdaq exchange under the ticker symbol HABT.

Known for its char-grilled burgers, sandwiches and salads, the 98-unit Habit Burger chain is the first fast-casual burger concept to attempt to go public. Fifty-three-unit Shake Shack is also reportedly considering an IPO this year.

Habit Burger is owned by Greenwich, Conn.-based private-equity firm KarpReilly LLC, which took a majority stake in 2007.

The chain grew from 26 units in three California markets in 2009, to 98 units across four states as of August. Habit Burger has also demonstrated 42 consecutive quarters of positive same-store sales growth, primarily due to increases in traffic.

For the July 1-ended second quarter, same-store sales rose 6.1 percent year to date, following a 3.6-percent increase in comparable sales for fiscal 2013.

Habit Burger joins a number of restaurant chains that have gone public this year, including Dave & Buster’s, El Pollo Loco, Papa Murphy’s and Zoe’s Kitchen Inc.

Last month, J. Alexander’s Holdings filed for an IPO, and both Wingstop and Café Rio Inc. — the latter another KarpReilly brand — are reportedly considering offerings.

Last week, Bojangles’ Famous Chicken ’n Biscuits said it is planning an IPO in the first half of 2015.

Contact Lisa Jennings at [email protected].
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