Dutch Bros reveals plans of a share sale

September 08, 2023 02:38 AM AEST | By Invezz

Dutch Bros reveals plans of a share sale — Image source: Invezz

Dutch Bros will sell shares to raise $300 million

On Thursday, the beverage company said it wants to raise $300 million via a share sale.

Its press release this morning named Jefferies, JPMorgan, and the Bank of America Securities as book-running managers for the public offering. The New York listed firm had about $23 million in cash and equivalents at the end of June.

The news arrives about a month after Dutch Bros named Christine Barone its new Chief Executive. She had been with the Oregon-headquartered firm as its President since February of 2023.

Shares of the drive-thru coffee chain are now trading at the same price at which they started this year.

Dutch Bros will use the capital to lower debt

Dutch Bros Inc plans on using proceeds from the said share sale to lower its debt.

Underwriters of the public offering will have thirty days to buy another $45 million worth of its shares, as per the press release.

The proposed offering is subject to market and other conditions, and there can be no assurance as to whether or when it may be completed, or the actual size or terms of the proposed offering.

Note that Dutch Bros swung to a profit in its latest reported quarter and that too a bigger one than experts’ forecast. Wall Street currently rates its shares at “overweight” on average.

The post Dutch Bros reveals plans of a share sale appeared first on Invezz.

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