Jersey Mikesshares fall in hyped NYSE debut as Danny DeVito, Eli Manning ring opening bell

Jersey Mike’s shares opened 8.7% below their initial public offering price on Thursday, giving the sandwich chain a valuation of about $6.7 billion in its New York Stock Exchange debut.The offering raised about $1 billion after pricing at the midpoint of the company’s marketed range on Wednesday, with the company selling roughly 43.5 million shares at $23 apiece.Jersey Mike’s offering marks one of the largest restaurant IPOs in recent years, bringing a fast-growing sandwich chain into a market that has seen few major food-service listings since the pandemic.The Tinton Falls, NJ-based company operates a fast-casual submarine sandwich franchise, with more than 3,300 locations across the US and Canada.Its listing tests investor appetite for the wider retail sector, where issuers are gradually returning to the market after a years-long slowdown.US IPOs have gathered steam this year, predominantly led by technology, defense and industrial listings, pushing proceeds past $140 billion, according to data from Renaissance Capital, a provider of IPO-focused research and ETFs.The momentum follows a brief lull at the start of the year, when the US-Iran conflict pushed issuers to the sidelines, although many are now starting to look past the volatility and move ahead with plans to go public.Jersey Mike’s is going public at a time when restaurant businesses are grappling with elevated interest rates, higher operating costs and stretched consumer budgets.The Dow Jones US Restaurants & Bars Index, which tracks the likes of McDonald’s, Starbucks SBUX.O, and Chipotle, is down over 1% this year, while the broader market has risen about 7%.Suja Life, which went public in May, has lost over half its value.A successful listing for the brand could help reinvigorate retailers’ confidence in pursuing their ambitions to go public this year.Inspire Brands, the owner of Dunkin’, Arby’s and Jimmy John’s, confidentially filed for a US IPO earlier this year.

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