Mexican food chain $Guzman y Gomez Ltd (GYG.AU)$ thrilled the Australian Stock Exchange (ASX) today with its shares soaring 37% in the hottest IPO debut in three years. The stock opened at A$30, a substantial leap from its A$22 issue price, boosting the company’s market capitalization to approximately A$3 billion.
Founded by New Yorker Steven Marks, Guzman y Gomez operates 210 restaurants globally, with a significant presence in Australia. The company envisions expanding its Australian footprint to match McDonald's, targeting over 1,000 restaurants in the next two decades.
The IPO raised A$335.1 million, with strong participation from private equity and institutional investors. The promising debut comes despite broader market challenges, signaling robust investor confidence in Guzman y Gomez’s growth potential.
While the company forecasts a net loss for 2024, it projects profitability by 2025, driven by its commitment to ethical sourcing and sustainable practices. This optimistic outlook has positioned Guzman y Gomez as a noteworthy player in the fast-food industry, both in Australia and internationally.