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Financing

IPic Entertainment planning to raise $25M in ‘mini IPO’

The theater-restaurant chain plans to use funds to open new locations.

The movie theater-restaurant hybrid iPic Entertainment, with leases signed to double in size in the near future, is planning to raise $25 million at $18.50 a share in its upcoming “mini IPO,” according to newly filed SEC documents.

The IPO would give iPic a market capitalization of more than $200 million. Once the stock is sold, the company would trade on the Nasdaq stock exchange under the ticker symbol IPIC.

The Boca Raton, Fla.-based chain is raising the funds through a relatively new process known as Regulation A+ that is targeted at smaller companies and enables them to raise funds from their customers and other small retail investors. The offerings are often known as mini IPOs because they are smaller than traditional offerings.

It’s the same process that Fatburger and Ponderosa owner Fat Brands Inc. used to raise $24 million in an IPO in October.

IPic operates 16 locations in 10 states. Those locations operate 121 movie screens. The company has another four locations under construction, and according to the SEC filing the chain has 15 locations that have either signed leases or are under negotiations.

The company believes it has the potential for 200 locations in the U.S.

IPic operates theaters with a heavy food and beverage component, with in-theater dining, higher-quality food and beverages and “architecturally unique” locations.

The company generated $69.4 million in revenue the first six months of this year. More than half of that, $37.7 million, came from food and beverage sales.

Yet iPic also reported a $14.6 million operating loss in the first half of 2017. EBITDA, or earnings before interest, taxes, depreciation and amortization, was negative $5 million.

The company’s biggest shareholders include Village Roadshow, an Australian company that makes movies, owns theaters and operates theme parks.

Last month, iPic received investment funds from the Indian movie theater company PVR.

Hamid Hashemi founded the chain in 2006 and has been the company’s president and CEO since 2010.

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