- Krispy Kreme will offer 26,666,667 shares at the price range of US$21 to US$24.00 per share.
- The donut chain plans to raise up to US$640 million in the public offering.
- Krispy Kreme plans to trade on NASDAQ under the ticker ‘DNUT’ and targets a valuation of up to US$3.96 billion.
- Krispy Kreme reported revenue of US$1.12 billion and a net loss of US$60.9 million in 2020.
Donut chain Krispy Kreme Inc. is planning to raise up to US$640 million in its initial public offering, according to an SEC filing. The company plans to trade under the ticker ‘DNUT’ on NASDAQ.
It is offering 26,666,667 shares in the IPO at a price range of US$21 to US$24.00 per share. It will offer 4,000,000 more shares if the underwriters exercise their option to purchase additional shares of common stock in full.
At the lower end of the price range, Krispy Kreme will raise US$560 million, while it would raise US$640 million at the upper end of the price range.
Krispy Kreme targets a valuation of US$3.96 billion as it will have 160,890,354 shares outstanding after the offering.
The company will offer 16.6 percent of the common stock in the IPO. Krispy Kreme will use the net proceeds from the offering to repay certain of our outstanding debt and to repurchase shares from certain of executive officers. It will also use the proceeds to pay tax withholdings related to certain restricted stock units and for general corporate purposes.
J.P. Morgan, Morgan Stanley, BofA Securities and Citigroup are the lead book-running managers in the offering.
Meanwhile, Krispy Kreme’s owner JAB Holding Company plans to distribute around 124.8 million shares of the company’s common stock to its minority partners. JAB will own approximately 38.6 percent of Krispy Kreme’s outstanding common stock after the offering and distribution
What does Krispy Kreme do?
Krispy Kreme sells doughnuts, brewed coffee, hot chocolate and chillers. It was company was founded in 1937. The North Carolina-based was incorporated in 2012 and changed its name to Krispy Kreme, Inc. in 2021.
Krispy Kreme became public on New York Stock Exchange in 2000. However, it became a private company after Germany-based JAB’s controlling subsidiary bought Krispy Kreme in 2016.
The company sold 1.3 billion doughnuts in 30 countries during the fiscal year 2020. It reported revenue of US$1.12 billion and a net loss of US$60.9 million during the year.
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