Dutch Bros & On Holding IPOs: Check price, lot size, other details

Highlights

  • Beverage maker Dutch Bros Inc. (NYSE: BROS) offered each share at US$23.00 in IPO.
  • Shoemaker On Holding AG (NYSE: ONON) kept its IPO share price at US$24.00.
  • Both the companies kept their IPO share prices higher than the expected range.

US beverage maker Dutch Bros Inc. (NYSE: BROS) and Swiss shoemaker On Holding AG (NYSE: ONON) on Wednesday launched their initial public offerings (IPOs) in the New York Stock Exchange (NYSE) under the ticker symbols ‘BROS’ and ‘ONON,’ respectively.

Both the IPOs were in focus on Wednesday after their higher-than-expected share prices. The following are some key details of the public offerings.

Dutch Bros Inc. (NYSE: BROS)

Dutch Bros is an Oregon-based beverage maker. On Tuesday, it announced its IPO share price at US$23, higher than the expected price range of US$18.00 to US$20.00 apiece set earlier.

The company has 7500 employees as of June 30.

Dutch Bros is offering 21,052,632 shares of Class A common stock in the IPO, which is to raise around US$500 million. Also, an additional 3,157,894 shares of Class A common stock are available on option for underwriters. The offering will close on September 17, 2021.

The stock with the ticker symbol BROS began trading on NYSE Wednesday.

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The IPO underwriter representatives are BofA Securities, J.P. Morgan Securities, and Jefferies LLC.

Dutch Bros is an operator and franchisor of drive-through shops that offer beverages like coffee, lemonade, shakes, energy drinks, etc. It claims to provide fast and superior services.

The company was founded in 1992. and it has a presence in 11 US states. It runs more than 471 shops as of June 30, 2021.

Dutch Bros generated US$327.4 million in revenue and US$5.7 million in net income in 2020.

In 2021, it launched the Dutch Reward program through its new app, garnering around 2.3 million-member activations as of June 30, 2021, only behind DoorDash, and McDonald’s.

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Dutch Bros (BROS) and On Holdings AG (ONON) start trading in NYSE after IPOs

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On Holding AG (NYSE: ONON)

The Zurich, Switzerland-based On Holdings AG kept its IPO share price at US$24.00, higher than the expected price range of US$20.00 to US$22.00. As of June 30, 2021, it had 883 employees.

It is offering 31,100,000 class A Ordinary shares in the IPO. An additional 4,665,000 Class A ordinary shares are available for optional purchase within 30 days for the underwriters.

The company expects to raise around US$746.4 million at the offering price. The offering will close on September 17.

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On holdings AG, founded in 2010, is a shoemaker focused on running shoes. It became famous after tennis superstar and 20 times Grand Slam winner Roger Federer invested in the company last year.

The company is set to trade on NYSE with the ticker symbol ONON. Its representative underwriters include Goldman Sachs and Co., Morgan Stanley, and J.P. Morgan.

It has a presence in over 60 countries with around 8,100 retail shops. It logged net sales of Swiss franc CHF425.3 million and a net loss of CHF27.5 million in 2020.

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Bottomline     

These two newcomers on NYSE have gathered huge traction and rightly so for their unique products and services. Many IPOs were launched on Tuesday, and many others will follow suit this month. However, investors must evaluate them carefully before investing.

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