Exterior view of Guzman y Gomez Mexican Kitchen in Port Macquarie, Australia on June 13, 2024.
James D. Morgan | Getty Images News | Getty Images
Mexican-themed fast-food chain Guzman y Gomez made a stellar debut on the Australian Stock Exchange on Thursday, with its shares jumping 39.1%.
The company was valued at A$2.23 billion ($1.49 billion) based on its initial public offering price of AU$22 per share, and its shares reached a price of AU$30.28 at the initial offering.
By 1:47pm Sydney time, shares had gained marginally and were trading at around AU$30, a rise of 36.36%.
Guzman y Gomez, which announced its IPO on May 31 with an offer size of 11.1 million shares, increased this to 15.3 million shares, raising AU$335.1 million. The company said it had received commitments from funds advised by Capital Research Global Investors to subscribe to its shares.
According to the company's website, it operates more than 200 restaurants in Australia, Singapore, Japan and the United States.
Guzman y Gomez’s IPO is Australia’s largest since chemical distributor Redox’s offering in July 2023, and the fourth offering above $100 million in the past two years, according to Bloomberg.
Barrenjoey and Morgan Stanley were joint bookrunners for Guzman y Gomez's IPO.