SYDNEY: Mexican food chain Guzman y Gomez served up Australia's best initial public offering debut in three years with its shares leaping more than one-third on their first trading day on Thursday , sending an upbeat signal about investor sentiment.
The company put up A$335.1 million of new stock, about one-sixth of the company, for trading. The share price increase raises the company's market capitalisation to about A$3 billion, from A$2.2 billion before its trading debut. Australian listings collapsed after a record 2021 as pandemic stimulus payments ended and the central bank raised interest rates to slow inflation. In 2024 so far, Australia has raised just A$98 million in IPOs, the second-lowest June half in more than a decade, according to LSEG data.