Companies and Brands
Will Fitbit and Fogo de Chao IPOs Go Against Each Other?
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Two key initial public offerings (IPOs) are coming out this week. The first is from Fitbit and the second is from Fogo de Chao. While both will be closely watched, these two seemingly work against each other: Fitbit wants to help you stay healthy and keep on track, while Fogo de Chao wants you to gorge on endless amounts of meat and buffet items on the side.
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Fitbit is expected to offer some 34.5 million shares in a range of $17 to $19 apiece, which could come with a $3.7 billion market valuation. Just two weeks ago, we had seen a price range of $14 to $16, and now insiders and backers may make up half of the offering. Those insiders were shown to be offering 12.1 million shares, versus the 7.5 million originally seen.
Morgan Stanley, Deutsche Bank, Bank of America Merrill Lynch, Barclays and SunTrust Robinson Humphrey are the underwriters for the Fitbit IPO. Its pricing is tentatively set for a Wednesday, with a trading debut on Thursday.
Fogo de Chao is expected to price 4.41 million shares in a range of $16 to $18 per share. The Brazilian steakhouse chain owner and operator is expected to price Thursday for Friday trading.
Fogo de Chao’s underwriters are JPMorgan, Jefferies, Credit Suisse, Wells Fargo, Deutsche Bank and Piper Jaffray. As a reminder, this company is currently run by and almost entirely owned by affiliates of private equity firm Thomas H. Lee Partners. Their ownership will drop from 96.4% ahead of the IPO to 79.07% afterward, although the number of shares is set to remain the same.
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The business of IPOs continues to be big. Fitbit is coming public in the wake of the Apple Watch launch, and Fogo de Chao is coming public into what is becoming a very crowded field of public restaurant chains. These are both considered widely recognized names throughout America. They also both target consumers directly, but with entirely different focuses.
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