Jersey Mike’s is heading to the public markets with a valuation that far outstrips recent restaurant IPOs, setting up a key test of investor appetite for high-growth franchise chains.
The New Jersey-based sandwich chain announced Monday that it has begun its IPO roadshow. The company plans to offer 43.5 million Class A shares at an expected price of $21 to $25 per share, raising approximately $913 million to $1.1 billion from newly issued and existing shares.
According to its amended IPO filing, Jersey Mike’s would have an implied equity value of about $7.3 billion at the midpoint of the range and roughly $7.9 billion at the high end. The company plans to list on the New York Stock Exchange under the ticker symbol JMKE.
The offering also crystallizes sizable paper gains for private equity backers, including Blackstone and the Abu Dhabi Investment Authority, which are selling shares while retaining a meaningful stake. Blackstone holds a controlling majority stake in Jersey Mike’s.
At its proposed valuation, Jersey Mike’s would debut well above recent restaurant IPOs, including Cava, Sweetgreen and Krispy Kreme, according to the report “A History of Restaurant IPOs.”
