Jersey Mike’s Subs has launched the roadshow for its proposed initial public offering of Class A common stock. The fast-casual restaurant chain plans to list its shares on the New York Stock Exchange under the ticker symbol “JMKE.”
Jersey Mike’s and certain existing stockholders plan to sell 43,478,261 shares through the offering. The expected IPO price range is between $21 and $25 per share.
At that range, the base offering would generate approximately $913 million to $1.09 billion in gross proceeds for Jersey Mike’s and the participating stockholders. The company did not disclose how many shares would be sold by Jersey Mike’s compared with the selling stockholders.
The selling stockholders are also expected to give the underwriters a 30-day option to purchase up to 6,521,739 additional shares. This option is intended to cover potential over-allotments associated with investor demand.
If the underwriters exercise the option in full, the offering would include 50 million shares. The total gross value would range from approximately $1.05 billion to $1.25 billion before underwriting discounts, commissions and other expenses.
The company has filed a registration statement on Form S-1 with the Securities and Exchange Commission. The filing remains preliminary and has not yet become effective, meaning the shares cannot be sold until the SEC registration process is completed.
The IPO roadshow gives Jersey Mike’s and its underwriters an opportunity to present the company’s business, financial performance and growth strategy to prospective institutional investors. Investor demand during the process will help determine the final offering price and allocation of shares.
Morgan Stanley, Jefferies and J.P. Morgan are serving as global coordinators and joint bookrunning managers. Barclays and Guggenheim Securities are acting as co-global coordinators and joint bookrunning managers.
The broader underwriting group includes BofA Securities, Goldman Sachs, Evercore ISI, UBS Investment Bank, Wells Fargo Securities, RBC Capital Markets and Deutsche Bank Securities. Several additional investment banks are participating as bookrunners or co-managers.
Jersey Mike’s is a fast-casual restaurant franchisor with more than 3,300 locations across the United States and Canada. The company emphasizes freshly sliced meats and cheeses, traditional sandwich recipes and its “A Sub Above” brand positioning.
The business was founded in 1956 as Mike’s Subs in Point Pleasant, New Jersey. It has since expanded from a neighborhood sandwich shop into one of the largest and fastest-growing restaurant franchise systems in North America.
An IPO would give Jersey Mike’s access to public equity markets while providing certain existing shareholders with an opportunity to sell part of their holdings. The listing could also give the company greater financial flexibility for expansion, although its planned use of proceeds was not detailed in the announcement.
