This Salad IPO Reached a Crunchy $5.6 Billion, But Is It Destined to Wilt?
The year's initial public offering (IPO) euphoria appears to know no bounds as healthy salad restaurant chain Sweetgreen (NYSE: SG) turns over a new leaf in its history with a $2.55 billion Nov. 18 public launch. Valued higher than many long-established restaurant chains by traders on its first day, Sweetgreen's shares skyrocketed more than 100% in a few hours of afternoon trading.
Though the stock value corrected downward somewhat, it still ended the day, and the week, with stunningly lofty gains. A closer look, however, reveals that the salad chain may not be quite that delicious, even if it has some potential strengths.
At least one kind of "green" wasn't in short supply when Sweetgreen went public on the New York Stock Exchange on Thursday, with traders frantically pumping dollars into the new company's stock. The original registration statement filed with the US Securities and Exchange Commission (SEC) called for the sale of 12.5 million shares at a price of between $22 and a proposed maximum offering price of $25 per share.
Source Fool.com
