Cava boosts its IPO price range, highlighting appetite for growth stories
How about we kick off the week with some good news?
This morning, American fast-casual restaurant chain Cava raised its IPO price range from $17-$19 per share to $19-$20 per share.
The Exchange explores startups, markets and money.
Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday.
As we reported during Cava’s IPO run, the company shares a number of similarities with other venture-backed, tech-enabled businesses that went public in and around 2021. That means this IPO is not a precise comparable for many startups that are waiting for the IPO market to return. Instead, it will serve to help us track a bit of private capital through its recycling period and catch the current vibe for growth-y companies.
This morning, we’re asking: What is Cava’s new midpoint and maximum valuation given the new price range? When we compare those figures to its recent revenue growth and profit metrics, can we spy any good news for unicorns looking to go public as soon as they can gin up the courage?
So what’s Cava worth at its new IPO price range?
Increasing your IPO pricing range from $17-$19 per share to $19-$20 per share is not that big of a shift. We’ve seen larger changes in the past, especially when the IPO market has been hot. Still, Cava has brought up the floor price for its IPO to its previous ceiling.
That’s great for the company, as it will be able to raise more capital without diluting its shareholders any more than planned.
Source: TechCrunch
