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The basics on Bojangles’ IPO: What you need to know

Charlotte-based Bojangles’ got its start in 1977 at this West Boulevard location. On Friday, it’s going public.
Charlotte-based Bojangles’ got its start in 1977 at this West Boulevard location. On Friday, it’s going public. mhames@charlotteobserver.com

On Friday, Bojangles’ is going public. Here are the basics on the Charlotte-based restaurant chain’s trip to Wall Street.

Q. What is an IPO?

A. An initial public offering, or IPO, is when a company sells stock to investors for the first time and becomes a publicly traded company.

Q. Who can buy the shares?

A. When a company goes public, Wall Street banks line up the initial buyers for the shares. These buyers are typically large institutions, such as mutual funds, pension funds and hedge funds. Bojangles’ on Thursday priced these initial shares at $19.

Q. What happens next?

A. Sometime Friday, the shares are expected to begin trading publicly on the NASDAQ stock exchange under the ticker symbol “BOJA.” That’s when ordinary investors can start buying shares.

Q. How can ordinary investors buy the shares?

A. Investors should talk to a financial adviser at their preferred bank or brokerage or use an online trading account. Remember, once the shares start trading, they can go up or down from that initial price.

Q. How many shares are being sold?

A. Bojangles’ is selling 7.75 million shares, but that could go up to 8.9 million if the banks underwriting the offering use their option to buy extra shares. At $19 per share, the IPO will raise $169 million. That money will go to certain Bojangles’ investors, not the company itself.

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