NEW YORK - Shares of sandwich maker Potbelly more than doubled in their Nasdaq trading debut Friday.
Potbelly extends the winning streak for foodies going public. In August natural and organic food store chain Sprouts Farmers Market Inc. (NASDAQ:SFM
, Stock Forum
) more than doubled on its launch. Restaurant chain Noodles & Co.'s (NYSE:NDLS
, Stock Forum
) stock also more than doubled in its June debut.
Potbelly's stock soared $18.90 to $32.90 in morning trading.
The company priced its initial public offering of 7.5 million shares at $14 per share, above the projected range of $12 to $13 each.
Potbelly Corp. raised $105 million in the offering, which is targeted to close Wednesday.
The Chicago company is selling about 7.3 million shares, while certain stockholders are selling 150,131 shares. The company won't receive any proceeds from the shares sold by the selling stockholders.
Potbelly is giving the underwriters a 30-day option to buy up to an additional 1.1 million shares.
The company said in a regulatory filing that it plans to use net proceeds to pay a previously declared dividend; to pay off debt and for working capital.
Potbelly began in 1977 as a small antique store in Chicago. The original owner started offering sandwiches and homemade desserts to customers in an effort to boost sales.
As of September, the company had 288 sandwich shops in 18 states and the District of Columbia. Its franchisees have seven shops in the U.S. and 12 in the Middle East.
In 2012, Potbelly reported net income available to common stockholders of $13.6 million on revenue of $274.9 million.
Its shares are trading under the “PBPB” ticker symbol.
OCI Partners units closed higher Friday after the methanol producer's initial public offering raised $315 million, which was less than the company expected.
The company's IPO of 17.5 million common units priced at $18 each. It expected the IPO to price at $19 to $21 per unit.
OCI Partners LP is based in Nederland, Texas. It runs a methanol and ammonia production facility on the Gulf Coast of Texas. The company plans to use the money to pay down debts and increase production capacity at its facility.
The units trade on the New York Stock Exchange under the ticker symbol “OCIP.” The units added 80 cents, or 4.4 per cent, to $18.80 in their debut.
Shares of Cherry Hill Mortgage Investment Corp. fell in their trading debut Friday after the company raised $130 million in its initial public offering.
The mortgage investment company priced its IPO at $20 per share. The stock closed down $1.50, or 7.5 per cent, to $18.50.
Proceeds will be used to buy mortgage serving rights and mortgage-backed securities issued or guaranteed by Fannie Mae (OBB:FNMA
, Stock Forum
), Freddie Mac (OBB:FMCC
, Stock Forum
) and Ginnie Mae , the Moorestown, N.J.-based company said.
Its shares now trade on the New York Stock Exchange under the ticker symbol “CHMI.”
The personal fortune of Twitter co-founder Evan Williams probably will take up 10 characters once the online communications company goes public.
Williams, who was Twitter's CEO for two years until Dick Costolo took over in 2010, owns a 12 per cent stake that makes him the company's largest shareholder. If Twitter turns out to be worth at least $17.60 per share, the initial public offering will make Williams a billionaire at 41 years old.
Williams, a Nebraska native who now lives in San Francisco, is likely to join the billion-dollar club because an outside appraisal of Twitter completed in August valued the company at $20.62 per share, according to IPO documents unsealed Thursday. At that price, Williams' 56.9 million shares would be worth nearly $1.2 billion.
San Francisco-based Twitter Inc. hopes to raise $1 billion an offer that's expected to be completed by Thanksgiving.
Williams owns such a large stake because Twitter was hatched within another startup called Odeo that he launched in 2005 after leaving a job at Google Inc. He had gone to work for Google after selling his first hit product, Blogger, to Google for an undisclosed amount in 2003.
Odeo, which specialized in podcasting, never caught on and Twitter was eventually spun into Obvious Corp., another company run by Williams.
Although Williams is no longer Twitter's chief executive, he remains on the company's board of directors. Another board member, Peter Fenton, and his venture capital firm, Benchmark Capital, own a 6.7 per cent stake in the company.
Next in line with a 4.9 per cent stake is Jack Dorsey, who came up for the idea for Twitter with Noah Glass and Biz Stone. The stakes of Glass and Stone aren't listed in the IPO documents, meaning they don't own enough stock to trigger legal disclosures.
Glass came up with the original name “Twttr” in a reference to chirping birds. Despite his early involvement in Twitter, Glass was never promoted as one of the company's founders along with Dorsey, Stone and Williams.
Other investors who own at least a 5 per cent stake in Twitter include private investment firm Rizvi Traverse, which backed Hugh Hefner's successful bid to take Playboy private two years ago, as well as Spark Capital, Benchmark Capital Partners and Union Square Ventures. DST Global, a London-based investment firm founded by Russian investor Yuri Milner, is another stakeholder. DST, which focuses its investments on Internet companies, was pre-IPO investor in Facebook.
Twitter's current CEO, former improvisational comedian Dick Costolo, owns a 1.6 per cent stake in the company.
Many of Twitter's 2,000 employees could become rich, too. They won't be allowed to sell their stock until Feb. 15, at the earliest.
A bankrupt electronics retailer appears to have gotten caught up in the investor fervour for Twitter.
Shares of Tweeter Home Entertainment Group Inc. rose as high as 15 cents Friday. That's up 1,400 per cent from Thursday's closing price of 1 cent. And trading volume skyrocketed to 14.4 million shares. Over the past year, the daily average was about 29,000, according to FactSet.
The Financial Industry Regulatory Authority, Wall Street's industry regulator, said the shares were halted Friday afternoon because of a misunderstanding related to the “possible initial public offering of an unrelated security.”
What could have gotten investors so confused?
Tweeter trades over the counter, under the “TWTRQ” symbol.
Twitter on Thursday offered investors details about its highly anticipated IPO and proposed the stock symbol “TWTR.”
But San Francisco-based Twitter's stock won't be available for trading until the company actually goes public. That could be before Thanksgiving.
Twitter has about 218 million users, far fewer than Facebook, which has more than 1 billion. But celebrities, from Oprah Winfrey to Britney Spears to President Barack Obama, are on it. And many TV networks and news organizations encourage people to follow their Twitter pages in order to start a conversation with viewers and promote their shows.
Twitter said that it expects to raise about $1 billion in its IPO.
And Tweeter: The chain was founded in 1972 and had been based in Canton, Mass. It sold TVs, audio equipment and other electronics, but the stores disappeared years ago. The company filed for bankruptcy protection in 2007 and closed the stores in 2008.
Tweeter's over-the-counter stock was worth 5 cents before trading was halted Friday.
The following is a list of initial public offerings planned for the coming week. Sources include Renaissance Capital, Greenwich, CT (www.renaissancecapital.com
) and SEC filings.
Week of October 7
Antero Resources Corp. - Denver, 30 million shares, priced $38 to $42, managed by Barclays, Citigroup, and J.P. Morgan. Proposed NYSE symbol AR. Business: Exploration and production company operating in the Marcellus Shale and the Utica Shale.
LDR Holding Corp. - Austin, Texas, 5 million shares, priced $14 to $16, managed by Piper Jaffray, William Blair, and Bryan, Garnier & Co. Proposed Nasdaq symbol LDRH. Business: Sells proprietary surgical implants for treating spine disorders.
MacroGenics Inc. - Rockville, Md., 4 million shares, priced $14 to $16, managed by BofA Merrill Lynch and Leerink Swann. Proposed Nasdaq symbol MGNX. Business: Clinical-stage biotech developing monoclonal antibody-based therapeutics for the treatment of cancer and autoimmune diseases.
QTS Realty Trust Inc. - Overland Park, Kan., 12.25 million shares, priced $27 to $30, managed by Goldman Sachs, Jefferies, and BofA Merrill Lynch. Proposed NYSE symbol QTS. Business: Data centre REIT with one of the largest portfolios by gross square footage.
SFX Entertainment Inc. - New York, 16.7 million shares, priced $11 to $13, managed by UBS, Jefferies, and Deutsche Bank. Proposed Nasdaq symbol SFXE. Business: Largest producer of electronic music-focused live events and content.
Stonegate Mortgage Corp. - Indianapolis, 8.6 million shares, priced $20 to $22, managed by BofA Merrill Lynch, Credit Suisse, and Barclays. Proposed NYSE symbol SGM. Business: A non-bank mortgage company focused on residential mortgage loans.
Western Refining Logistics LP - El Paso, Texas, 12.5 million common units, priced $19 to $21, managed by BofA Merrill Lynch, Barclays, and Goldman Sachs. Proposed NYSE symbol WNRL. Business: MLP formed by Western Refining to own, operate, develop, and acquire terminals, storage tanks, pipelines, and other logistics assets.
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