Guzman y Gomez surges to $3 billion valuation after listing on share market
The value of Guzman y Gomez has surged past $3 billion after the Mexican-themed fast food giant debuted on the Australian share market, netting its co-founder more than $250 million in a day.
The company announced its plans to go public last month, when it said shares would be offered at $22 apiece.
But after listing on the ASX today, GYG shares finished trading at $30 – an increase of 36.4 per cent on what the company expected.
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Guzman y Gomez CEOs Hilton Brett and Steven Marks. The company is worth more than $3 billion after its ASX debut. Brent Lewin/AFR
Guzman y Gomez's market capitalisation has passed $3 billion as a result, up from $2.2 billion in the initial public offering (IPO) announcement.
The success will allow the restaurant chain to move forward with its plans to expand to more than 1000 stores in Australia in the next two decades.
It said last month that it planned to put $200 million of funds raised from the listing towards that expansion.
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The restaurant chain first opened in Sydney's Inner West and now has more than 200 stores across four countries. Guzman y Gomez/Facebook
It currently has 210 locations across Australia (where 185 are located), Singapore, Japan and the US.
Guzman y Gomez was established in 2006 by current co-CEO Steven Marks and fellow New Yorker Robert Hazan, with its first restaurant opening in the Sydney suburb of Newtown, in the city's Inner West.
Marks said today that the IPO was "just the beginning" for the company.
It was also a major windfall for him personally. The success of the float saw his wealth rise by around $260 million.
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