Krispy Kreme is seeking to raise between $560 million and $640 million at a near $4 billion valuation as it moves forward with its planned initial public offering (IPO).
The donut shop is expecting to sell about 26.7 million shares priced between $21 and $24 each. The company confidentiality filed with the Security and Exchange Commission earlier last month.
Krispy Kreme is planning to list on NASDAQ under the ticker symbol “DNUT.” J.P. Morgan, Morgan Stanley, BofA Securities, and Citigroup are the lead book-running managers, per the filing. The company is planning to use the net proceeds from the IPO to pay down debt, buy back shares, and further general business, per the SEC filing.
So far this year, public offerings raised around $171 billion, Reuters reported on Wednesday (June 22), citing Dealogic data. Last year public offerings raised a record $168 billion.
Headquartered in North Carolina, Krispy Kreme had a banner 2020, fueled in part by the public’s cravings for sugary treats during the pandemic lockdowns. The company sold 1.3 billion donuts in 30 countries during fiscal 2020, and posted net revenues of $1.1 billion, the most since it launched in 1937, according to the filing. Some 64 percent of the company’s doughnut sales last year were Original Glazed.
The public offering marks the company’s return to the U.S. stock market after being taken private by Keurig parent company JAB Holding, which acquired the donut maker in 2016 for $1.35 billion. Krispy Kreme first went public in 2000 on NASDAQ and switched to the NYSE in 2005, according to SEC records. JAB also took Panera private in 2017.
Krispy Kreme’s rival Dunkin’ was taken private late last year after being acquired for $11.3 billion by restaurant chain owner Inspire Brands. The “indulgence foods” category surged 4.3 percent during the pandemic.