Finance: Fatburger's parent company wants to go public and let everyday investors in on the action

FAT Brands, Inc. will look to raise $20 million using the Regulation A+ offering and list its shares under the ticker FAT.

The parent company of Fatburger and Buffalo's Cafe said it will go public and allow everyday investors to get in on the action.

FAT Brands, Inc. will look to raise $20 million using the Regulation A+ offering established by the SEC in 2015 which allows all investors — not only investment banks or institutional investors — to participate in the IPO.

Regulation A+ is meant to make it easier for small companies to essentially crowdsource investment in a "mini-IPO." Think of it like Kickstarter, except investors become real shareholders.

And as part of the rules, there are fewer requirements and regulations for companies than if it were to do a full-fledged IPO.

“As we make the transition from a private company to a public one, we are delighted to position our restaurants so that our fans can now be part owners too,” wrote FAT Brands Founder and CEO Andy Wiederhorn in a press release.

FAT Brands wants to be listed under the ticker "FAT."

The company intends to use the capital raised from the IPO for brand acquisitions and paying off debt, among other uses. FAT Brands has over 200 locations between Fatburger and Buffalo's Cafe and will look for expansion opportunities as well.

"We have developed the management team and business infrastructure to continue to grow our brands, acquire new brands and grow them globally under our asset-light model,” wrote Wiederhorn.

from pulse.ng - Nigeria's entertainment & lifestyle platform online