P.F. Chang’s China Bistro Inc. –

PHOENIX – P.F. Chang’s China Bistro Inc., owner and operator of a full-service Chinese restaurant chain, went public December 4, offering 3.3 million shares. The stock priced at $12 apiece, above the company’s $8 to $10 filing range.

The initial public offering, underwritten by Donaldson, Lufkin & Jenrette, NationsBanc Montgomery Securities L.L.C. and Dain Rauscher Wessels, left 9.6 million shares outstanding.

Oak Investment Partners VI, Catterton-Simon Partners, Trinity Ventures V, Global Retail Partners and Silver Creek Investments were venture investors. Founder and former Chief executive Paul Fleming was the only selling shareholder, offering 850,000 shares.

P.F. Chang’s operates 22 restaurants in 13 states across the country. The chain’s concept – blending high quality traditional Chinese cuisine and American hospitality in a contemporary bistro setting – was developed in 1993 by Mr. Fleming, a Phoenix-based restaurateur, and Philip Chiang, owner of the Mandarin restaurant in Beverly Hills, Calif. The company hopes to establish a nationwide presence through an aggressive expansion program, while providing investors with superior returns.

The company was not profitable in its first two years of operation, losing $1.7 million in 1997 and $1.1 million in 1996. However, the company made a $884,000 profit in the first nine months of 1998.

Proceeds from the offering, estimated at more than $36 million, will be used to repay debt and to launch new restaurants.

J. Michael Chu, a managing director of Catterton-Simon Partners, and Gerald Gallagher, a general partner of Oak Investment Partners, have been members of P.F. Chang’s board of directors since February 1996. James Shennan Jr., a principal of Trinity Ventures, and Yves Sisteron, a principal of Global Retail Partners, joined the board in May 1997.

P>F> Chang’s – Selected Financials

(in thousands, except per share data)

Nine Months Ended

Fiscal Year 1995 Total Year 1996 Fiscal Year 1997 Sept.28, 1997 Sept. 27, 1998

Revenue

10,465 18,445 39,768 27,638 53,176

Net income (loss)

647 -1,145 -1,696 -865 884

Net income (loss) per share*

– -0.12 -0.11 0.01 0.21

*Pro forma