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Burger chain Habit Restaurants files for IPO-Reuters

(Reuters) – Habit Restaurants Inc, a fast-food restaurant chain known for its burgers, filed with U.S. regulators on Thursday for an initial public offering of common stock.

The Irvine, California-based company listed Piper Jaffray, Baird and Wells Fargo among the underwriters to the IPO.

The company, which operates the Habit Burger Grill chain of restaurants, offers charburgers, sandwiches and milk shakes.

Founded in 1969 in California, the chain has 98 restaurants in four U.S. states. Its shareholders include private investment firm KarpReilly LLC.

The company reported a 43 percent increase in revenue to $120.4 million for the year ended Dec. 31. Net income nearly doubled to $5.8 million during the period.

The IPO filing, which included a nominal fundraising target of about $86.3 million, did not reveal how many shares the company planned to sell or on which exchange it plans to list its common stock.

The amount of money a company says it plans to raise in its initial IPO filings is used to calculate registration fees. The final size of the IPO could be different.

The chain, which intends to list its common stock under the symbol “HABT”, plans to use the proceeds to repay debt and for general corporate purposes.

The company will join the list of casual dining chains, including El Pollo Loco Holdings Inc and Zoe’s Kitchen Inc, that have listed this year.
Shake Shack, the fast-food restaurant chain that has developed a cult following for its ‘Shackburgers’, ‘flat-top’ hot dogs and milk shakes, has also selected banks for a proposed initial public offering.