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Bojangles goes public to become $1 billion company

Staff writer ▼ | May 8, 2015
Shares of Bojangles rose as much as 47 percent in their debut, valuing the restaurant chain at nearly $1 billion.
IPO   Shares of Bojangles rose 47%
Bojangles' said in April that it goes public, targeting $100 million. It serves southern U.S.-inspired food, including buttermilk biscuits, and claims to use only fresh chicken. The company, which records about 40 percent of its sales before 11am, has a menu that remains largely unchanged since the company was founded in Charlotte, North Carolina in 1977.

The company has 622 restaurants, of which about 60 percent are franchised, mainly located in the southeastern United States. It gets about 80 percent of its revenue via drive-through and takeout.

The offering of 7.75 million shares was priced at the high end of the expected range of $18-$19 per share. The company's shares touched a high of $27.97 within minutes of trading on Friday.

Bojangles' revenue jumped about 15 percent to $430.5 million in 2014, while net income rose 7.4 percent to $26 million.

The IPO raised about $147 million, with a majority of the proceeds going to its controlling shareholder, private equity firm Advent International Corp. Advent's stake in Bojangles fell to about 74% from about 94% after the offering.