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Krispy Kreme sinks following a 24% surge on its first day as a public company

Ethan Wu   

Krispy Kreme sinks following a 24% surge on its first day as a public company
Stock Market1 min read
  • Krispy Kreme gave up ground Friday morning, following a 24% first-day surge.
  • The stock immediately sank as the market opened, losing 7.6% in the first five minutes of trading before finding a floor.
  • Krispy Kreme's IPO had initially been targeting the $21-$24 range, before later being revised down.

Krispy Kreme gave up ground Friday morning, following a 24% first-day surge as the donut dealer went public.

The stock immediately sank as the market opened on Friday, dropping as much as nearly 10% shortly after the opening bell before paring some losses.

Early activity on Thursday saw the newly-public stock sag, opening a bit below the target IPO price of $17. The stock, under the ticker DNUT, recovered throughout a choppy trading day, finishing up 24.2% to close at $21.12.

Krispy Kreme's IPO had initially been targeting the $21-$24 range, before later being revised down to ultimately price at $17 per share. This means even Thursday's impressive gains still only put the stock at the lower bound of its original goal. The IPO raised around $500 million, down from initial expectations of $640 million, according to Bloomberg.

Krispy Kreme was trading at $19.65 as of 9:40 a.m. ET on Friday.

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