iPic Entertainment IPO

IPic Entertainment plans a mini-IPO

Theater-dining chain latest small company to do a Regulation A+ offering

The movie theater-casual dining chain iPic Entertainment on Tuesday said it plans to file a Regulation A+ initial public offering — making it the latest in a string of small companies hoping to raise funds through a so-called mini-IPO.

The Boca Raton, Fla.-based company, which operates 16 locations in 10 states, wants to raise up to $30 million in the late fall of this year from the online investment company Banq.

It’s the third restaurant company to announce such a process in the past month, following Bobby’s Burger Palace and Fatburger owner Fat Brands Inc.

Regulation A+ offerings enable small companies to raise money from customers and other small investors, and were made legal as part of the 2012 JOBS Act. Such companies typically cannot get the attention of institutional investors who are vital for traditional IPOs.

Currently, iPic operates 121 screens at its locations and has five locations under construction, “with a pipeline of additional sites in various stages of development,” the company said in its announcement.

The company was founded in 2006. Its locations operate a casual dining restaurant, a full-service bar and “luxury theater auditoriums.” The chain is part of an increasing trend toward destination chains that focus as much on entertainment as they do food, amid a weak market for casual dining chains as consumers shift more spending to limited-service concepts.

“As we announce our decision to transition from a private company to a public one, we are excited to empower our supporters and 1.7 million members to become part owners of the iPic Entertainment brand experience and company,” Hamid Hashemi, the company’s founder and CEO, said in statement.

TriPoint Global Equities LLC, owner of Banq, will act as the lead managing selling agent and bookrunner for the offering. iPic plans its offering for “late fall 2017” and then will be listed either on the New York Stock Exchange or Nasdaq and be subject to their requirements for reporting.

The company plans to use proceeds from the offering for working capital and “general corporate purposes,” including remodeling existing locations and adding new units.

Fat Brands is planning its offering in September. It’s uncertain when Bobby’s Burger Palace is planning its mini-IPO. The company is not listed on the Banq website as an upcoming offering.

A spokeswoman for Bobby’s said on Monday that the company is in a phase known as “testing the waters” and has yet to file with the SEC. The company is currently focused on getting its licensing business launched “to build more business momentum globally.”

Contact Jonathan Maze at [email protected]

Follow him on Twitter: @jonathanmaze

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