The Los Angeles-based company behind the Fatburger casual dining chain aims to raise $20 million in an initial public offering
FAT Brands Inc. said it plans to file a Regulation A+ initial public offering in the largest offering of its kind to date.
The company plans to list its stock on the New York Stock Exchange or Nasdaq under the ticker symbol “FAT,” which stands for “fresh, authentic, tasty.”
FAT Brands said it intends to use the proceeds from the offering for key corporate purposes including brand acquisitions, working capital, domestic and international expansion and retirement of existing debt.
FAT Brands founder and Chief Executive Andy Wiederhorn said the move comes as the company grows its brands worldwide.
FAT Brands operates a portfolio of brands that includes Fatburger, Buffalo’s Cafe and Buffalo’s Express, plus others that it is in the process of acquiring. The company franchises more than 200 restaurants in six states and 18 countries.
“We have developed the management team and business infrastructure to continue to grow our brands, acquire new brands and grow them globally under our asset-light model,” Wiederhorn said in a statement. “As we make the transition from a private company to a public one, we are delighted to position our restaurants so that our fans can now be part owners too.”
The company also said it plans to be the first Reg A+ Issuer listed on a National Securities Exchange to pay a dividend. Regulation A+, part of the 2012 JOBS Act, is an alternative to a traditional IPO, which makes it easier for smaller, early stage companies to access capital.
SOURCE: Biz Journal
By: I Chun-Chen