Potbelly Corp. (PBPB:US), the Chicago-based purveyor of made-to-order toasted sandwiches, more than doubled in trading after pricing its IPO above an increased range, highlighting investors’ appetite for growing restaurant chains.
The shares (PBPB:US) surged 120 percent to $30.77 at the close in New York, the second-best trading debut on a U.S. exchange this year, according to data compiled by Bloomberg. The company and existing stockholders sold 7.5 million shares for $14 each, according to data compiled by Bloomberg, after offering them for $12 to $13. The company raised the range Oct. 2 after initially setting it at $9 to $11.
Potbelly has been expanding in cities from Portland, Oregon, to New York and expects to open as many as 35 new shops this year, according to its prospectus. The company plans to use proceeds from the offering to support this growth, in addition to funding a dividend and paying back loans.