Market fight brewing over Guzman y Gomez shares
As insiders get the green light to trim their lucrative stakes, short sellers are circling the hot Mexican fast food chain.
Guzman y Gomez (GYG), heralded as the most hyped IPO of 2024, is shaping up to become one of the market’s biggest battlegrounds this year, with up to $2 billion worth of shares potentially hitting the market.
Voluntary escrow agreements will partially lift after GYG’s highly anticipated first-half results on 21 February, enabling long-term shareholders — including TDM Growth Partners, investment bank Barrenjoey, founder Steven Marks, and the board — to sell up to 25% of their stakes.
On-market, these shares — amounting to 13.5% of the company — would be worth approximately $530 million, following GYG’s blockbuster June IPO.
Despite facing heavy criticism from analysts and commentators who balk at its high earnings multiple, the Mexican quick-service restaurant chain has doubled in value since its IPO.
