Shake Shack IPO Prices Way Higher Than Expected

Shake Shack sold 5 million shares in its IPO for $US21 each, Bloomberg reports.

The burger chain will raise $US105 million, giving the company af market value of about $US746 million.

The price is significantly above the $US17-$US19 range expected.

The stock will begin trading on Friday under the ticker SHAK.

The cult burger chain has experienced some incredible growth ever since it opened its first restaurant in Manhattan in 2001.

From 2010 to today, the company has gone from 7 shacks to 63 shacks worldwide. This is according to a recent regulatory filing.

“During the three fiscal years ended December 25, 2013, we grew from seven Shacks in two states to 40 Shacks across six states, Washington, D.C. and eight other countries, representing a 79% compound annual growth rate,” the filing noted.

Total revenue has surged from just $US19.5 million to $US82.5 million, which represents a compound annual growth rate of 62%.

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