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Jersey Mike's IPO Arrives on Gate: Can Retail Investors Capture the Next Big Opportunity?

Gate is continuing to bridge the gap between traditional finance and digital assets with the launch of Direct IPO Season 2, giving eligible users another opportunity to participate in a major US IPO using USDT or GUSD. After the successful introduction of SpaceX in Season 1, the spotlight now shifts to Jersey Mike's (JMKE), one of North America's fastest-growing restaurant brands.

Jersey Mike's has built an impressive reputation with more than 3,300 locations across the United States and Canada. Its franchise-focused business model has allowed the company to expand rapidly while maintaining relatively low capital requirements. Instead of investing heavily in opening every new location itself, the company benefits from franchise partners funding much of its expansion, creating an efficient and scalable growth strategy.

Subscriptions officially open 27 July at 10:00 AM (UTC+8). Investors can subscribe using USDT or GUSD, and any allocated shares will be transferred directly into their Gate stock account with no lock-up period, providing immediate flexibility once trading begins. However, investors should remember that this is a pre-IPO demand collection process, meaning submitting an order does not guarantee receiving the full number of requested shares.

The estimated IPO price ranges between US$21 and US$25 per share, although the final offering price will be determined before listing based on investor demand and market conditions.

One of the biggest reasons many investors are paying attention is Blackstone's backing. As one of the world's largest investment firms, Blackstone's involvement adds credibility and confidence in the company's long-term strategy. Even after the IPO, Blackstone is expected to remain the controlling shareholder, ensuring continuity in management and corporate direction.

From a financial perspective, Jersey Mike's has demonstrated consistent growth. During 2025, revenue increased by approximately 11%, reaching US$724 million, while adjusted EBITDA climbed to approximately US$339 million. These numbers highlight strong operational performance despite a competitive restaurant industry.

Looking ahead, management plans to continue opening thousands of additional stores while expanding internationally. If executed successfully, this strategy could support long-term earnings growth and strengthen the company's market position.

However, investors should also evaluate the risks carefully.

The proposed valuation implies a market capitalisation of approximately US$6.7-7.9 billion, equal to roughly 24 times adjusted EBITDA, which many analysts consider relatively expensive compared with several established restaurant businesses.

Another consideration is that approximately 68% of the IPO shares are being sold by existing shareholders rather than being newly issued by the company. As a result, most of the funds raised will go to current investors instead of directly supporting business expansion.

The company also carries approximately US$2.1 billion in debt. Although part of the IPO proceeds will be used to reduce borrowings, leverage remains an important factor to monitor. Additionally, while same-store sales continue to grow, the pace of that growth has slowed compared with previous years.

For short-term traders, strong market excitement surrounding the IPO could generate significant price volatility during the first few trading sessions. Rapid gains are possible, but equally sharp corrections should not be ruled out.

For long-term investors, Jersey Mike's offers an attractive combination of a recognised consumer brand, a proven franchise model, and continued expansion opportunities. Nevertheless, much of this optimism may already be reflected in the IPO pricing.

Overall, I view Jersey Mike's as a high-quality growth company with promising long-term prospects, but one that also comes with premium valuation risks. Investors interested in participating may consider allocating only a small percentage of their portfolio (around 2-5%), while closely monitoring market conditions after listing. Careful risk management remains just as important as identifying growth opportunities.

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