On Wednesday, June 30, Krispy Kreme lowered its IPO price to $17 each, below its recent range of $21 to $24.
The new initial public offering price will raise the company about $500 million from 29.4 million shares.
According to the U.S. Securities and Exchange Commission, the doughnut business plans to raise about $640 million with almost 27 million shares in its initial price range.
Based on the outstanding shares recorded in the prospectus, the firm would have a $3.86 billion market at the top of that range.
An analyst said that Krispy Kreme is leading investors to price its U.S. IPO under a marketed scale.
On late Wednesday, the donut chain priced its initial public offering shares. The trading should begin on Thursday.
According to the listing documents, the company plans to use its IPO proceeds to pay debts. Moreover, it wants to buy back shares from certain executives, and general corporate purposes.
In its recently ended quarter last April 4, Krispy Kreme’s revenue soared 23% to $321.8 million. Its net loss was narrowed to $378,000, and its total debts stood at an estimated $1.2 billion at that time.
For fiscal 2020, it generated about $1.1 billion in net sales, up by $17 with a loss of $60.9 million.
In 2016, the European investment fund JAB Holdings bought Krispy Kreme for $1.3 billion, making the chain private following its financial difficulties.
After the chain’s IPO, JAB will proceed to own almost 78% of its shares.
The offering is led by JPMorgan Chase & Co, Morgan Stanley, Bank of America Corp, and Citigroup Inc.
The company is planning to be listed on the Nasdaq Global Select Market under the ticker symbol DNUT.
IPO Day’s Big Gains
Moreover, Wednesday is a big day for tech IPOs at the U.S. exchanges. Investors brought in billions of dollars in gains.
On the debut of the Chinese ride-hailing service DiDi Chuxing on the New York Stock Exchange, its biggest stakeholders were Uber, Tencent, and Softbank. Its initial public offering closed with a market capitalization of $67.8 billion.
Meanwhile, Delta Air Lines was among the top investors of the airport security vendor Clear which also rang NYSE’s opening bell.
Furthermore, New York’s Insight Partners owned the biggest day on the venture companies as the cybersecurity software firm SentinelOne reaped its $1.45 billion stakes.
Highland Capital owned $500 million shares from the manufacturing marketplace Xometry.
Also, on the private equity firms, Francisco Partners owned LegalZoom’s over a quarter stake that celebrated Nasdaq’s opening.
In addition, the ad tech company Integral Ad Science’s majority now belongs to Vista on the Nasdaq closing bell.