(Associated Press) April 13, 2011 – Arcos Dorados Holdings Inc. priced its initial public offering of 73.5 million shares at $17 each, giving the offering for McDonald’s biggest franchisee a potential value of $1.2 billion.
The Argentina-based company operates 1,755 McDonald’s restaurants in 19 countries and territories in Latin America and the Caribbean.
Its shares are scheduled to begin trading on the New York Stock Exchange on Thursday under the ticker ARCO.
Arcos’ shares had earlier been expected to come to market at a range of $13 to $15. But growth prospects in the strong Latin American economies had also stoked speculation that the IPO could price higher.
The company is offering about 9.5 million Class A shares and certain shareholders are offering about 64 million Class A shares.
The selling shareholders have granted the underwriters the option of buying up to an additional 11 million Class A shares to cover excess demand.
Investors that are selling their shares, making up the bulk of the IPO, include Gavea Investment in the Cayman Islands, DLJ South American Partners in Toronto, and Capital International Private Equity Fund in Irvine, Calif.
Arcos Dorados (the name translates to “Golden Arches”) accounts for about 5 percent of the money spent at McDonald’s restaurants globally.