Restaurant chain Cava valued at US$4.7 billion as shares pop on debut

MEDITERRANEAN restaurant chain Cava Group notched a valuation of US$4.7 billion in its market debut on Thursday (Jun 15) as the IPO market picks up this year after a lull in 2022.

Shares of the company opened at US$42 apiece on the New York Stock Exchange, above the IPO price of US$22. Cava sold about 14.4 million shares in the offering, raising US$318 million.

Investors are warming up to IPOs this year after a volatility-fuelled 2022 curbed appetite for new listings and fuelled a risk-off sentiment.

Last month, Johnson & Johnson’s consumer health business, Kenvue, completed the largest IPO since Rivian Automotive listed in 2021.

The Renaissance IPO Index, which tracks the performance of major listings, has climbed about 30 per cent this year.

Cava was founded by three friends with Greek roots – Ted Xenohristos, Ike Grigoropoulos and Dimitri Moshovitis – and opened its first restaurant Cava Mezze in Rockville in 2006.

It started selling its signature dips and spreads in local grocery stores within two years of establishing its first outlet.

JPMorgan, Jefferies and Citigroup were the joint lead book-running managers for Cava’s offering. REUTERS