Overview
- Jersey Mike’s began a public roadshow this week to offer 43,478,261 Class A shares with an expected price range of $21 to $25 per share.
- At that range the deal could generate roughly $913 million to $1.09 billion in gross proceeds and implies an equity value near $7.3 billion to $7.9 billion.
- The offering mixes 13.8 million new shares and about 29.7 million shares sold by existing investors, and Blackstone will retain majority voting control after the IPO.
- The company expects net proceeds of roughly $301 million at the midpoint to shore up the balance sheet and possibly reduce debt while sellers could realize about $742 million at the top of the range.
- Roadshow meetings are underway with Morgan Stanley, Jefferies and J.P. Morgan leading the syndicate, governance disclosures in the filing have drawn press scrutiny, and final pricing and a NYSE listing date for ticker JMKE have not yet been set.