Investors hungry for Bojangles’ ahead of IPO

Investors appear hungry for Bojangles’ stock ahead of the restaurant’s initial public offering.

The Charlotte-based fast-food chain has increased the number of shares it’s selling in its IPO to 7.75 million from 6.25 million in a sign of strong demand from investors, according to a filing from the company Wednesday.

Bojangles’ also upped the price range of its shares to $18 to $19 per share instead of $15 to $17.

The banks underwriting the IPO also have the option to buy an addition 1,162,500 shares. If all the shares are sold at $19, the offering would raise about $169 million.

The final price is to be decided Thursday, the filing said. The shares are expected to begin trading Friday on the NASDAQ under the ticker symbol “BOJA.”

Though rare, the IPO’s timing could be moved up if demand from investors is strong enough.

The proceeds of the IPO will go to some of the company’s key investors, not Bojangles’ itself.

According to securities filings, the largest holder of Bojangles’ shares, private equity firm Advent International, could now sell up to 8.4 million shares, if the underwriters buy their extra allotment.

Only select investors, including mutual funds and pension funds, will be able to buy the stock at the IPO price. But once the shares begin trading, ordinary investors can buy the stock, typically through a broker or an online trading account.

Bojangles’, founded in Charlotte in 1977 and known for its chicken and biscuits, has said it plans a big expansion, though it will remain concentrated mostly in areas where it already has a presence. The company operates 622 restaurants in 10 states and the District of Columbia, and two-thirds of its restaurants are in the Carolinas.

This story was originally published May 6, 2015 at 8:54 AM with the headline "Investors hungry for Bojangles’ ahead of IPO."