Krispy Kreme IPO: DNUT stock jumps 23% on NASDAQ debut - Kalkine Media

July 01, 2021 03:56 PM PDT | By Kiran Murali
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Summary

  • The doughnut company’s stock ended Thursday’s trading at US$21, up 23 percent.
  • Krispy Kreme priced its IPO at US$17 per share, well below the expected range of US$21 to US$24.
  • The company raised US$500 million in the offering by 29.4 million shares.

Krispy Kreme Inc. (NASDAQ: DNUT) stock jumped over 23 percent in its second market debut on July 1.

The doughnut company’s shares started trading on Thursday at US$16.5, less than the initial public offering price of US$17 per share.

However, the stock rebounded and gained momentum to end the first-day trading at US$21, up 23.53 percent. As of Thursday’s closing price, Krispy Kreme has a market capitalization of US$3.3 billion.

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On Wednesday, Krispy Kreme priced its IPO below the previously expected range of US$21 to US$24 per share. The company raised US$500 million by offering 29.4 million shares at a price of US$17 per share. It was earlier expected to raise up to US$640 million.

J.P. Morgan, Morgan Stanley, BofA Securities, and Citigroup were the lead book-running managers for the offering.

Krispy Kreme was founded in 1937. The North Carolina-based company first became public in 2000 on NYSE. However, the company stopped trading and became private following its acquisition by JAB Holdings’ subsidiary in 2016.

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Source: Pixabay

In the fiscal year ended January 3, Krispy Kreme reported revenue of US$1.12 billion, compared with US$959.4 million in the previous year. The company sold 1.3 billion doughnuts during the year. The net loss almost doubled to US$60.9 million in 2020.

Meanwhile, the company recorded US$321.8 million in total net revenue and US$378,000 in a net loss in its first quarter. This compares with revenue of US$261.2 million and loss of US$10.9 million in the year-ago period.

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