Australian Mexican restaurant chain Guzman y Gomez went public Thursday (June 20) at the Australian Stock Exchange (ASX) and traded at A$29.90 ($19.94) at midday local time (02:00 UTC).
Reuters reported that the company's shares jumped 36% after its initial public offering (IPO) of A$22 ($14.67) per share.
The company issued 100 million shares worth A$335.1 million ($224 million), and around 3.1 million of them were traded in the first hours of the firm's public offering.
Guzman y Gomez's Unexpected Market Share Performance
Originally, Guzman y Gomez's initial issue was closed to the public and only involved selling shares to existing financial backers and franchise owners.
However, Thursday's share price surge was a sign of hope for a better market performance after high interest rates and inflation limited demand through 2022 and 2023.
In addition, the food chain announced in May that it intends to open at least 30 stores per year in addition to the 183 currently in operation across Australia and about 30 in Singapore, Japan, and the United States, the Wall Street Journal added.
Meanwhile, Australian public broadcaster ABC reported that the surge in the share market valued the company at about A$3 billion ($2 billion), which easily earned its spot in the ASX top 100 and placed hope in the floundering stock market after the ASX200 slipped lower after weak European market performance.
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