Latest News by Industry
By Ishika Dangayach, 2:30 PM ET
Krispy Kreme shares climbed more than 19% despite a dismal opening trade for the company's debut to the stock market.
The maker of the original glazed doughnut priced its initial public offering at $17 per share on Wednesday night, considerably below the targeted range of $21 to $24 per share. The stock opened at $16.30 a share on Thursday afternoon, but it quickly regained.
The firm raised $500 million from the share sale, giving it an estimated worth of $2.7 billion. Krispy Kreme, which also owns Insomnia Cookies, is a Nasdaq-listed company that trades under the symbol “DNUT.”
During the dotcom bubble, the doughnut chain went public for the first time 21 years ago but its unit had to file for Chapter 11 bankruptcy in 2005. Krispy Kreme was taken private in 2016 by JAB Holding, the Reimann family's investment arm, it was purchased for $1.35 billion.
According to the filing, the net profits would be used to settle debts, repurchase stock from some of the company's leaders, and pay tax withholdings on some restricted stock units. The remaining cash will be put to general company usage.
Krispy Kreme originally opened its doors in North Carolina in 1937, selling doughnuts at local grocery shops.
The doughnut chain presently has about 1,400 retail locations in 33 countries, as well as approximately 12,000 grocery, convenience, and mass merchant stores in the United States.
In fiscal 2020, it sold 1.3 billion donuts across 30 countries, marking the greatest level of sales in the brand's history, with net revenues of $1.1 billion.
Krispy Kreme's IPO launch coincides with the biggest week for U.S. IPOs so far in 2021, with at least 16 other businesses going public.
With inputs from CNBC