REUTERS/Mike Blake
- Peet’s Coffee raised $2.5 billion in its initial public offering, one of the largest this year despite the coronavirus pandemic.
- The company announced its IPO plans just 10 days ago.
- Shares of Peet’s Coffee surged as much as 17% in its first day of trading.
- Read more on Business Insider.
A bet that coffee could withstand a pandemic and 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 Friday it raised $2.5 billion, or 2.3 billion euros, in its initial public offering. The company is selling about 71.4 million shares, or 14% of the business, at 31.50 euros per share.
The IPO, which took only 10 days, is priced at the high end of JDE Peet’s BV’s target range and values the company at $17.3 billion, or 15.6 billion euros.
The IPO has defied the coronavirus pandemic and is the largest of the year so far in Europe and the second-largest globally, behind Beijing-Shanghai High-Speed Railway Corp.’s $4.4 billion IPO in early January.
In its first day of trading in Amsterdam, JDE Peet’s BV shares surged as much as 17%.
“We are thrilled to price this offer on Euronext Amsterdam during this extraordinary time,” said Casey Keller, CEO of JDE Peet’s in a Friday 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 both 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 is selling about 22.2 million new shares in the IPO process for about 700 million euros to pay down existing debt, the company said. The rest of the money will go to existing shareholders such as Oreo cookies maker Mondelez International, which has sold down its position.
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