Fast food restaurant chain Guzman Y Gomez is planning an IPO on the ASX next month at a $2.2 billion valuation.

The company will proceed with a fully underwritten float of 11.1 million shares at $22 apiece or $242.5 million – $42.5 million of which is a sell-down by some existing holders, the Australian Financial Review reported.

The firm plans to use the float proceeds to fund growth and network expansion in Australia.

TDM Growth Partners will hold a 29.7 per cent stake in the company post-IPO, while co-founder and co-CEO Steven Marks will control 9.9 per cent. Barrenjoey Capital will hold 9.6 per cent, and chairman Guy Russo will control 5.6 per cent.

Founded in 2006 by New Yorkers Steven Marks and Robert Hazan, Guzman Y Gomez has more than 170 locations in Australia. The chain also has operations in Singapore, Japan, and the US, with about 23 restaurants.

The company had put off a planned ASX listing in February after its net loss widened to $3.9 million in the first half of this financial year. Its co-founder, Robert Hazan stepped down from the board earlier this week.