Jersey Mike's, the prominent sandwich chain, is poised to make its trading debut on Thursday, July 30th, on the NYSE under the ticker symbol "JMKE". The company is aiming for a valuation of up to $7.94 billion, making it one of the largest restaurant IPOs in recent years, potentially surpassing the scale of Cava ($2.5 billion in 2023) and Sweetgreen ($3 billion in 2021). The IPO filing was updated on July 20th, specifying the terms of the offering.
Jersey Mike's and its selling stockholders are looking to raise up to $1.09 billion by offering 43.5 million shares of Class A common stock. The pricing range for these shares is set between $21 and $25 apiece. This offering represents approximately 32% new issue shares and 68% from existing shareholders. At the $23 midpoint of the price range, Jersey Mike's anticipates approximately $301 million in net proceeds from its own share sales, with the remainder going to existing shareholders.
The offering is being led by a syndicate of major financial institutions. Morgan Stanley, Jefferies, and J.P. Morgan are serving as lead bookrunners, with Barclays and Guggenheim Securities acting as co-global coordinators. The underwriters also have an option to purchase up to 6.5 million additional shares for 30 days following the offering. This IPO follows Jersey Mike's confidential filing in April and its acquisition by private equity giant Blackstone last year for a reported $8 billion, with Blackstone aiming to retain a majority stake post-IPO.
Jersey Mike's has expanded significantly since its founding in 1956, now boasting approximately 3,300 locations and systemwide sales exceeding $4 billion last year. The company is not only considered one of the fastest-growing brands but also holds the position of the second-largest sandwich chain after Subway. The IPO marks a significant event for the U.S. restaurant sector, testing investor appetite after a recent rebound in the U.S. IPO market during the quarter ended June.
