Noodles’ stock nears $38 on first day of IPO

BROOMFIELD – Noodles & Co. Inc.’s stock share price more than doubled to more than $36 per share in first-day trading of the restaurant chain’s initial public offering.

The Broomfield-based company (Nasdaq: NDLS) raised $96.4 million in the IPO, selling 5.4 million shares for $18 each, according to documents filed with the U.S. Securities and Exchange Commission . Underwriters may buy an additional 803,571 shares in overallotments in the next 30 days.

The estimated share price has risen at least twice since the company announced its plans to go public, according to SEC documents. The planned price per share originally was between $13 and $15.

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Noodles stock was at $36.26 in mid-afternoon trading, after rising to a high of $37.68 earlier in the day.

Noodles & Co. executives have said they plan to grow the company’s number of restaurants to 2,500 in the next 15 to 20 years, according to SEC documents. Noodles and its franchisees own and operate 345 restaurants in 26 states and Washington, D.C.

Kevin Reddy, Noodles’ chief executive, and Keith Kinsey, its chief operating officer, both formerly worked for Chipotle Mexican Grill Inc. Noodles is known for its wide range of noodle and pasta dishes, from its Japanese Pan Noodles and Pesto Cavatappi to Wisconsin Mac & Cheese.

Company revenue grew to $300 million in 2012 from $170 million in 2008, a compound annual growth rate of 15.2 percent. Company income grew to $16 million in 2012 from $2 million in 2008, a 67.5 percent annual growth rate, according to documents.

The first Noodles & Co. restaurant opened in 1995, and the company was headquartered in Boulder before moving to Broomfield. Connecticut private equity firm Catterton Partners is the majority owner of the company. Noodles has about 90 employees at its headquarters in Broomfield and about 6,500 nationwide.

Morgan Stanley & Co. LLC and UBS Securities LLC, both in New York, are lead underwriters in the transaction, according to a company press statement.