IRVINE, Calif. - Kura Sushi USA, Inc. (NASDAQ: NASDAQ:KRUS), a technology-enabled Japanese restaurant chain, has announced the pricing of its underwritten public offering of 695,938 shares of Class A common stock at $85.00 each, with anticipated net proceeds of about $56.2 million after the underwriting discount. The company has also provided the underwriters a 30-day option to buy up to an additional 104,390 shares to cover over-allotments, which could increase the net proceeds to roughly $64.6 million if fully exercised.
The closing of the offering is expected on November 13, 2024, pending the satisfaction of customary closing conditions. Kura Sushi plans to allocate the net proceeds for general corporate purposes, which include capital expenditures, working capital, and other business activities.
William Blair & Company, L.L.C., Barclays (LON:BARC) Capital Inc., and TD Securities (USA) LLC are serving as the joint book-running managers for the offering. Co-managers include Craig-Hallum Capital Group LLC, Roth Capital Partners (WA:CPAP), LLC, and The Benchmark Company, LLC.
This offering is being conducted in accordance with a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission (SEC). The preliminary prospectus supplement and accompanying base prospectus have been filed with the SEC and are accessible on their website.
Kura Sushi USA, established in 2008, operates 70 locations across 20 states and Washington DC, offering a unique revolving sushi service model and authentic Japanese cuisine. It is a subsidiary of Japan's Kura Sushi, Inc., which boasts over 550 restaurants and 40 years of brand history.
The statements in this press release contain forward-looking information based on current management expectations. These statements are subject to risks and uncertainties that could cause actual future results to differ materially from those projected. Factors that could affect outcomes include the company's use of proceeds, market conditions, operational execution, and economic factors, among others detailed in the company's SEC filings.
The information in this article is based on a press release statement by Kura Sushi USA.
In other recent news, Kura Sushi USA, Inc. initiated a public offering of its Class A common stock. This offering includes a 30-day option for underwriters to purchase additional shares to cover any over-allotments. The completion and terms of the offering are subject to market conditions, with the company intending to use the net proceeds for general corporate purposes.
The public offering is being managed by William Blair & Company, L.L.C., Barclays Capital Inc., and TD Securities (USA) LLC. These firms are following an effective shelf registration statement and have filed a base prospectus with the Securities and Exchange Commission (SEC). A preliminary prospectus supplement will also be filed in due course.
These are recent developments for Kura Sushi USA, a subsidiary of Japan's Kura Sushi, Inc., which operates over 550 restaurants globally. The company issued forward-looking statements regarding the use of proceeds and its growth strategy, cautioning investors about potential risks and uncertainties that could impact actual results. These risks include economic factors, competition, supply costs, consumer preferences, labor costs, and regulatory changes.
InvestingPro Insights
As Kura Sushi USA (NASDAQ: KRUS) moves forward with its public offering to raise capital for expansion and general corporate purposes, it's worth noting some key financial metrics and insights from InvestingPro that shed light on the company's current position.
According to InvestingPro data, Kura Sushi USA has demonstrated strong revenue growth, with a 13.21% increase in the last twelve months as of Q3 2024. This growth aligns with the company's expansion plans mentioned in the article. Additionally, the company boasts an impressive gross profit margin of 59.21% for the same period, indicating efficient cost management in its restaurant operations.
InvestingPro Tips highlight that Kura Sushi USA is a prominent player in the Hotels, Restaurants & Leisure industry, which supports its position as a growing technology-enabled Japanese restaurant chain. The company's ability to maintain dividend payments for 24 consecutive years, as noted by another InvestingPro Tip, suggests financial stability and a commitment to shareholder returns, even as it seeks additional capital through this public offering.
It's worth noting that Kura Sushi USA operates with a moderate level of debt, which could provide flexibility as it deploys the newly raised capital for expansion. This financial prudence, combined with the company's growth trajectory, presents an interesting profile for investors considering the offering.
For those interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Kura Sushi USA's financial health and growth prospects.
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