The group,which was already being criticised by some professional investors for an eye-watering valuation ahead of its public float,watched investors drive the share price up 36 per cent,or $8,to $30. It was the most successful initial public offering (IPO) on the local bourse in years.
And with a $3 billion valuation as of Thursday evening,it puts GYG on a “mind-boggling” price-to-earnings (PE) ratio of 500,according to IG market analysts.
At these levels,the burrito maker is making Nvidia – which has had its shares soar 2600 per cent in five years – look like a stodgy underperformer.
Just to remind everyone,Nvidia is regarded – with some credibility – as the hottest play in artificial intelligence,a technology that promises to be at least as transformational as the internet.
Guzman y Gomez is an Australian-made Mexican fast food operator,co-founded by former Wall Street investment banker and co-chief executive Steven Marks.
GYG’s ties to Mexico appear to be limited. The company’s prospectus mentions some charity work in the country and the role of Marks as the honorary consul of Mexico for NSW until April,when the IPO started to heat up.