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Highlights
- Sweetgreen aims to list its shares on the New York Stock Exchange (NYSE) and has applied to trade under the stock symbol SG.
- Under the Sweetgreen IPO, 12.5 million shares of the Class A common stock would be offered by the company.
- Goldman Sachs & Co. LLC, Morgan Stanley, J.P Morgan, and Allen & Company LLC among others are the leading underwriters for Sweetgreen IPO.
The American fast-casual restaurant chain known for serving a variety of salads, Sweetgreen, Inc. has set the terms for its initial public offering and will most likely go public sometime next week.
The Washington, D.C.-based company is planning to offer 12.5 million shares of the Class A common stock and has kept the price range of the shares between US$ 23 to US$ 25 per share.
Sweetgreen IPO: SG stock's price range revealed. Is it worth investing?
Sweetgreen aims to list its shares on the New York Stock Exchange (NYSE) and has applied to trade under the stock symbol SG. The underwriters for the public offering will also get an option of buying additional 1,875,000 shares of the Class A common stock.
In the prospectus filed with the US Securities and Exchange Commission (SEC), Sweetgreen has mentioned Goldman Sachs & Co. LLC, Morgan Stanley, J.P Morgan, and Allen & Company LLC among others as the leading underwriters for the IPO.
Should you invest in the Sweetgreen IPO?
Sweetgreen aims to build healthier communities through healthy food and as people are expected to focus on their fitness, the restaurant chain could benefit from it.
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The global fitness industry is expected to rise in future and a Research and Markets report suggests that the global fitness industry was valued at US$ 81 billion in 2020 and it is likely to grow at a compound annual growth rate of 7.2 per cent between 2021 to 2026.
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Sweetgreen is looking to go public as it aims to use the gross proceeds for capital expenditures, working capital, and operating expenses among other things.
In addition, the salad-maker aims to enhance its robotic technology, which came through the acquisition of Spyce, a restaurant managed by robots.
Bottom line
If you are interested in buying the SG stock as a retail investor, then you will get an option of buying the pre-IPO stock.
Sweetgreen has mentioned in the prospectus that it anticipates that up to one per cent of the shares of Class A common stock will be offered to retail investors through the online brokerage platform of Robinhood Financial, LLC.
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Sweetgreen plans to increase its presence and it added 21 locations in the past year. The company currently operates 140 restaurants, and it wants to double the number of stores in the next three to five years.
