- Peet's Coffee on Friday raised $2.5 billion in its
initial public offering , one of the largest this year despite thecoronavirus pandemic . - The company announced its
IPO plans just 10 days ago. - Shares of
Peet's Coffee surged as much as 17% in their first day of trading. - Read more on Business Insider.
A bet that coffee could withstand a pandemic and the ensuing economic downturn has paid off for the European investment firm responsible for Peet's Coffee, Krispy Kreme, and Keurig.
JDE Peet's BV, carved out of JAB Holdings, said on Friday that it raised €2.3 billion, or about $2.5 billion, in its initial public offering. The company is selling about 71.4 million shares, or 14% of the business, at €31.50 per share.
The IPO, which took only 10 days, was priced at the high end of JDE Peet's BV's target range and valued the company at €15.6 billion, or about $17.3 billion.
The IPO has defied the
In its first day of trading in Amsterdam, JDE Peet's shares surged as much as 17%.
"We are thrilled to price this offer on Euronext Amsterdam during this extraordinary time," Casey Keller, the CEO of JDE Peet's, said in a press release. "Seeing the investor interest in JDE Peet's reinforces the belief in our strategy and solidifies our role as a global leader in coffee and tea."
The Netherlands-based company sells coffee in cafes and grocery stores across the US, Europe, and parts of Asia. Its brands include Peet's Coffee, Jacobs Coffee, Douwe Egberts, Tassimo, and Senseo.
JDE Peet's said it was selling about 22.2 million new shares in the IPO for about €700 million to pay down existing debt. The rest of the money will go to existing shareholders such as Mondelez International, which has sold down its position.
Read the original article on Business Insider