The Mexican-themed restaurant’s $2.2 billion listing had divided the market. It intends to use the proceeds to rapidly increase the number of its stores.
Guzman y Gomez shares surged 36 per cent to $30 on their first day of trade as investors piled into the biggest local float in the past three years, one that local bankers, brokers and fund managers hope will signal signs of life in a long-moribund market for listings.
The chain started in the Sydney suburb of Newtown in 2006 and plans to use the funds raised through the IPO to grow to 1000 stores around Australia over the next two decades. It also has stores in Singapore, Tokyo and four stores in Chicago.Advertisement Guzman y Gomez’s debut marks the largest float since APM Human Services hit the ASX in December 2021 with a market value of $3.3 billion. After several lean years since the end of the COVID-19 pandemic – with few big companies listing on the local exchange – bankers and investors are hoping its success will mean more activity.
But the listing has not been without controversy. Some fund managers had queried the high valuation Guzman y Gomez had attracted. Others were sceptical about growth plans. Analysts at Morningstar estimated that it was only worth $15 per share.
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