NEW YORK (MarketWatch) — Shake Shack Inc. shares rallied sharply in their market debut Friday, opening a staggering 125% above their initial public offering price.
The New York burger chain priced its shares late Thursday at $ 21, which was above the price range of $ 17 to $ 19 a share, itself $ 3 above the prior range. The shares opened at $ 47.21 and climbed as high as $ 52.50 in early trade. The stock SHAK, +130.95% is trading on the New York Stock Exchange under the symbol SHAK.
The company, which started life in 2004 as a vendor in Madison Square Park, offered 5 million shares to raise $ 105 million, and it has the option to sell another 750,000.
Proceeds of the offering will be spent on expanding and renovating existing restaurants.
The IPO season has been dull so far in 2015 with just $ 1 billion worth of deals coming to market since the start of the year, according to Dealogic data. That compares with about $ 5.3 billion worth in the same period a year ago.
Much of the blame can be placed on the collapse of crude oil prices, which has discouraged any companies from that sector in going public. In 2014, the oil-and-gas sector accounted for 43.6% of U.S. IPOs from Jan. 1 to Jan. 29.