IPO Roundup: El Pollo Loco soars in debut
NEW YORK (AP) — Wall Street is still hungry for fast-casual restaurant chains.
El Pollo Loco, which serves up Mexican-style dishes, is the latest restaurant chain to soar in its stock market debut. Others, including Zoe's Kitchen Inc., Potbelly Corp. and Noodles & Co., also climbed in their initial public offerings.
Shares of El Pollo Loco are up almost 50 percent in midday trading Friday.
Three other IPOs released Friday included two drug companies and a water drainage system maker. Their shares were narrowly mixed by midday.
Here's how they all fared:
EL POLLO LOCO HOLDINGS INC.
The chain, whose headquarters is in Costa Mesa, California, grills chicken in front of customers to make its Mexican-style dishes at its 400 restaurants in Arizona, California, Nevada, Texas and Utah. It raised more than $107 million after pricing 7.14 million shares at $15 per share. It plans to use the cash raised to pay down debt. Shares of El Pollo Loco, which are trading on the Nasdaq exchange under the symbol "LOCO," rose $7.34, or 48.9 percent, to $22.34 in midday trading.
The maker of treatments and therapies for eye diseases raised $65 million after selling 5 million shares at $13 per share. The pricing is below its previously expected range of between $14 per share and $16 per share. Ocular plans to use the money it raised to complete clinical trials of its treatments, for marketing expenses and to buy manufacturing equipment. Its shares slipped 9 cents to $12.91 on the Nasdaq exchange. The shares trade under the symbol "OCUL." The company is based in Bedford, Massachusetts.
The Irish drug company makes after-surgery pain treatment and medicine for diabetic foot infections. It raised $58.5 million after pricing 6.5 million American depositary shares at $9 per ADS. It previously expected to raise more money, between $69.6 million and $80.3 million, in a larger offering of shares. Innocoll plans to use the cash it raised to develop its treatments and increase its manufacturing infrastructure. Its shares, which are trading on the Nasdaq exchange under the symbol "INNL," rose a penny to $9.01.
ADVANCED DRAINAGE SYSTEMS INC.
The Hilliard, Ohio-based company makes water drainage systems and pipes. It raised $232 million after the company and some of its shareholders sold 14.5 million shares for $16 per share, which was below its previously expected range between $17 per share and $19 per share. Advanced Drainage plans to use some of the money raised to pay its debt. Its shares, which are trading on the New York Stock Exchange under the symbol "WMS," rose 5 cents to $16.05.