Cara looking to raise $200 million in IPO, plans to price stock at $19-$22

TORONTO – The company behind Harvey’s and Swiss Chalet hopes to raise $200 million from a public stock offering that will help repay debt, according to its presentation to investors.

Cara Operations Ltd. — which is making a return to the Toronto stock market after more than a decade — plans to price its stock between $19 and $22 per subordinate voting share.

The price values the company at $1 billion to $1.1 billion, depending on the final share price.

In addition to Harvey’s and Swiss Chalet, Cara owns the Milestones, East Side Mario’s, Casey’s, Kelsey’s and Montana’s chains.

Under the plan announced last month, the Phelan family and Fairfax Financial Holdings (TSX:FFH) will maintain control of the company with multiple voting shares that will carry 25 votes each. Each subordinate share will carry a single vote.

After the IPO, Fairfax is expected to continue to hold as much as a 41 per cent stake in Cara, while the Phelan group will hold as much as 36 per cent.

Fairfax will have a 53 per cent voting interest, while the Phelan group will have a 46 per cent voting interest.

Cara has applied for the ticker symbol CAO. It expects a final price for the IPO the week of April 6 and the offering is expected to close on the week of April 20.