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MINNEAPOLIS - It's a barbecue chain with just three units and no steady profit history, but Famous Dave's of America Inc. is sizzling among small investors like one of its well-done briskets.
After building a reputation among diners in the Twin Cities for its St. Louis-style spare ribs, Texas brisket, roasted chicken and quartet of regional barbecue sauces, the fledgling chain went to Wall Street last month to raise $15 million in an initial public offering.
The offering began trading in the Nasdaq market under the symbol "DAVEU" at $6.50 a unit, which included one share of common stock and one class A warrant. It moved up almost immediately to trade at about $11.50 a unit.
With an additional $4.2 million in proceeds stemming from an earlier private placement, the company said its investors have infused enough capital to easily fund expansion out of its Minnesota backyard, setting the stage for a future national chain.
"We've learned a lot coming out of this year," said Dave Anderson, founder, chairman and chief executive of Famous Dave's of America Inc. "We're looking to triple our current store base in 1997 with anywhere from six to eight units. We've begun to identify sites for 1998 that will take us to out-ofstate locations such as Madison, Wis.; Chicago; and possibly Indianapolis."
However, despite...