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Investors bet that Sweetgreen will make sweet amounts of green – FiratNews

Investors bet that Sweetgreen will make sweet amounts of green – TechCrunch

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U.S. fast-casual salad chain Sweetgreen priced its IPO at $28 per share yesterday. Promoting 13 million shares in its IPO, the corporate’s early gross proceeds from the transaction whole $364 million, earlier than taking shares reserved for its underwriting banks under consideration.

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For Sweetgreen, the pricing is a win. The corporate initially anticipated to cost between $23 and $25 per share, that means that it offered shares at a better value than it had anticipated. And Sweetgreen offered 500,000 extra shares in its IPO than its closing S-1/A submitting indicated.

On condition that buyers made a bigger, costlier guess on Sweetgreen than we’d have anticipated, there’s work to do.

exchange banner sq gry plusLet’s calculate the corporate’s IPO valuation, utilizing each easy and absolutely diluted share counts. Then we’ll dig into Sweetgreen’s closing IPO income a number of to grasp how buyers are really valuing the corporate. From there, we’ll see if the corporate’s valuation squares up with what we’ve seen from different current technology-enabled IPOs.

Why are we being attentive to Sweetgreen? As a result of it began elevating exterior capital within the mid-aughts and saved at it by means of a Sequence I in 2019. Extra merely, a bunch of personal buyers, together with enterprise capitalists, guess on Sweetgreen. So, we care.

Sweetgreen’s IPO valuation

Earlier than it added 500,000 shares to its IPO — 575,000 if we embody 75,000 shares positioned into its underwriters’ choice pool — Sweetgreen anticipated that it could have 106,311,529 shares excellent after its IPO. That determine rises to 108,761,529 shares if we depend the extra fairness offered and the complete whole of shares reserved for underwriters.

At that new share depend at $28 per share, Sweetgreen is value $3.05 billion.

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