By Bitwave 
As the technology industry and investors wait with bated breath for heavily venture-backed companies like Turo, Reddit, and Instacart to go public, Cava is taking a bold step forward by powering its own debut. The company has set an initial IPO price range this week, providing insight into what it may be worth once it’s public. This is also an opportunity for us to revisit our valuation estimates.
The Numbers
Cava intends to sell 14.4 million shares between $17 and $19 each, raising hundreds of millions of dollars in the process. If Cava’s underwriters exercise their option to purchase more equity at the IPO price, that number could go up to 16.6 million shares.
Why Cava Matters
At first glance, Cava, a fast-casual chain that serves Mediterranean food, may seem like an odd choice for TechCrunch to cover. However, the company has raised extensive private capital, including venture funds, and is worth more than $1 billion. This IPO will recycle funds currently locked up in its illiquid shares back to investors, and that matters for the companies that do come under the ambit of our usual coverage.
A Closer Look at Cava’s Valuation
That said, Cava sits neatly next to other tech-enabled businesses that have gone public in recent years. I’m thinking about names like Sweetgreen and Rent The Runway, even if the latter has a very different business model. If you want to learn more about Cava’s valuation, keep reading.
The Signaling Power of Cava’s IPO
Cava’s IPO will not unlock an ocean of parked venture capital dollars. It will make some cash available again, but as we noted last time, the IPO is likely more valuable for its potential signaling power. If Cava’s IPO prices and trades well in its early days, it could help build confidence in the public markets and around public debuts.
The Market’s Waiting Game
Given that many tech startups are stuck twiddling their thumbs as they wait for the halcyon days of sky-high valuations to return, some proof of success from a company that’s actually doing something could go a long way. More when Cava formally prices.
Topics
- Cava IPO: The much-anticipated public debut of Cava
- EC Market Analysis: A closer look at the market trends and analysis
- EC Venture Capital: Insights into the venture capital industry
- Instacart IPO: The Instacart public offering
- IPO Pricing: Understanding how IPOs are priced
- Reddit IPO: The Reddit public debut
- Startups: The latest news and trends in the startup world
- The Exchange: In-depth analysis of market trends and more
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Sources
- Cava’s IPO press release
- Market analysis reports from reputable firms
- Interviews with industry experts and thought leaders