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Investors and employees of Mexican fast-food chain Guzman y Gomez whooped and cheered at midday on Thursday as the burrito maker clinched its place as the hottest float on the ASX in three years, with its market value soaring to more than $3 billion in its trading debut.
Its shares closed at $30 – more than 36 per cent above what investors paid in the blockbuster initial public offering under the ticker “GYG”, having opened their maiden session at that price.
Mexican food chain Guzman y Gomez investors and employees cheered as the company floated on the ASX at a valuation north of $3 billion.Credit: Dominic Lorrimer
“This is a big milestone for all of us, and it’s truly just the beginning,” GYG’s co-chief executive and co-founder Steven Marks said at the IPO ceremony at the Australian Securities Exchange in Sydney.
Marks grew emotional as he thanked his co-founder Robert Hazan, co-chief Hilton Brett, chair Guy Russo and identical twin brother Evan Marks, one of the business’ earliest investors and now the company’s third-largest shareholder, as well as his wife and various investors standing in the crowd, half of whom had donned black and yellow branded hoodies.
“It’s very emotional, and we’ve been working so hard for 20 years, and the value and culture is so strong, and we’re building this amazing business, and hopefully you can see that today,” he said.
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Marks’ net worth swelled to more than $264 million based on his 8.81 million shares at $30 apiece, all of which he has retained saying he’s “never going away from GYG”. He also has more than 2 million share options due to vest by January 2026, worth around $30 million at current prices.
Demand from major investors saw GYG boost the stake sold in the float from $242.5 million to $335.1 million. Of this, $200 million is being invested by the company in further expansion, with the remaining $135 million going to investors who sold down their stakes.
Marks, a former Wall Street hedge fund manager, co-founded Guzman y Gomez with fellow New Yorker Robert Hazan in 2006. Since then, the business has grown to a chain of 185 stores across Australia, 16 in Singapore, five in Japan, and four in the US, only one outlet of which is profitable.