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Portillo’s files to raise $ 405 million in stock offerings

Portillo’s restaurant chain plans to raise up to $ 405.4 million through an IPO of its shares, the company said in a regulatory filing released Tuesday.

Oak Brook-based Portillo’s is selling a minority stake in a company that weathered the pandemic well. The financial results show the Chicago-style hot dogs, burgers and Italian beef sandwiches supplier achieved rising revenues and profits from stoppages related to COVID-19 despite a hit in early 2020.

The restaurant chain plans to sell 20.27 million shares for $ 17-20 each, according to files. There’s no IPO date that companies can postpone if they don’t like market conditions.

The company would remain under the control of private equity firm Berkshire Partners. The owners of the newly issued Class A shares would have a 28% stake in Portillo’s, or 33% if the lead managers of the stock exercise an option to purchase an additional 3 million shares.

The proposed valuation of $ 20 per share would give Portillos a total market value of approximately $ 1.4 billion, according to the filing. The stock would trade on the Nasdaq Global Select Market under the symbol PTLO.

With 67 restaurants in nine states, Portillo’s plans to grow its locations by about 10% per year. While Chicago and the suburbs are the largest market, most of the expansion will take place in other regions.

It is said that in its 58 years it has never closed a restaurant. Instead of laying off employees or taking leave of absence during the pandemic, the company invested in training employees to shift the business towards deliveries.

Still, the company has seen labor unrest. In July, 18 workers at the Portillo Centralized Food Preparation Center in Addison resigned and complained that their hours were being increased with no overtime pay.

The non-profit group Arise Chicago, a religious organization that campaigns for workers’ rights, participated in the strike. The spokeswoman Shelly Ruzicka had no immediate information on the employee problems on Tuesday.

In its IPO filing with the Securities and Exchange Commission, Portillo’s stated that revenue for the first half of 2021 was $ 258 million, compared to $ 217 million for the same half year last year. Income for the first half was $ 14 million, surpassing the full year 2020 value of $ 12 million.

It offers a wide range of insurance companies including Morgan Stanley, Piper Sandler and Chicago-based William Blair.

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