The private equity firm that has controlled Irvine-based Habit Restaurants Inc. since leading an investor group in a 2007 buyout of the fast-casual burger chain was expected to trim its holdings to less than a majority stake through a secondary share offering.
Habit said the secondary offering of 5.75 million shares—including the underwriter allotment of 750,000 shares—was expected to be completed last week. One result of the sale would be that Habit—which went public Nov. 19—would no longer be a “controlled company” under Nasdaq rules.
Greenwich, Conn.-based KarpReilly LLC had controlled 55% of voting power in two classes of common stock. That’s expected to fall to between 38% and 41% after the secondary offering. KarpReilly is expected to remain the largest single shareholder as it relates to voting control.
Shares in the secondary offering were priced at $30.96.
