Industry News | October 10, 2013

Potbelly Announces Results of Initial Public Offering

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Potbelly Corporation announced the closing of its previously announced initial public offering of 8,625,000 shares of common stock at a price to the public of $14 per share, which included 1,125,000 shares of common stock issued upon the exercise in full of the underwriters' option to purchase additional shares. The company sold 8,474,869 shares of common stock, and certain stockholders sold 150,131 shares of common stock.

The company received net proceeds from the offering of approximately $108.8 million, after deducting the underwriting discount and other estimated offering expenses. Potbelly Corporation intends to use the net proceeds received from the sale of its shares to pay a previously declared cash dividend of approximately $49.9 million on shares outstanding prior to the offering, to repay borrowings of about $14 million under its credit facility, and for working capital and general corporate purposes.

BofA Merrill Lynch and Goldman, Sachs & Co. acted as joint book-running managers for the offering, and Robert W. Baird, William Blair, and Piper Jaffray acted as co-managers. The offering was made only by means of a prospectus, available through BofA Merrill Lynch.