Potbelly pops 135% on first day of trading

By Renaissance Capital,

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Potbelly, which operates 288 sandwich shops in the US, posted a 120% gain on Friday, the second best first-day gain of 2013. After trading as high as $33 before noon, the restaurant chain closed on Friday at $30.77, 208% above its original $10 midpoint. The company raised $105 million on Thursday by offering 7.5 million shares at $14, above the upwardly revised range of $12 to $13.

Potbelly was the fourth company of the year to double on its first day, joining natural grocer Sprouts (124%), fellow fast-casual restaurant Noodles (104%, now up 142%) and enterprise software provider Benefitfocus (102%). The number of doubles represent a sharp uptick in the post-tech bubble era. After 2000, when 84 out of 406 US IPOs doubled (21%), just eight companies (0.5%) gained 100% or more on their first days from 2001 to 2012.

Correction: Previously stated that six companies had gained 100% or more from 2001 to 2012.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines IPOs
Referenced Stocks: PBPB

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