Krispy Kreme Seeks Roughly $4 Billion Valuation in IPO

FINANCE   JUNE 22, 2021   BEN COLEY  

Krispy Kreme exterior

The doughnut chain is offering 26,666,667 shares at a price of $21 to $24 per share.

Krispy Kreme hopes to raise between $560 million to $640 million through its IPO, according to an SEC filing.

The doughnut chain is offering 26,666,667 shares at a price of $21 to $24 per share. That range implies a valuation of $3.46 billion to $3.96 billion. Underwriters have 30 days to decide whether to purchase up to an additional 4 million shares.

The company will use net proceeds from the offering to repay debt, repurchase shares of common stock from certain executives, make payments on tax withholdings relating to certain restricted stock, and for general corporate purposes. Krispy Kreme will be listed on the Nasdaq as “DNUT.”

Krispy Kreme earned net revenue of $1.1 billion in 2020—the highest sales level in history—and swung a net loss of $64.3 million, compared to $959.4 million in net revenue and a net loss of $37.4 million in 2019. In its most recent quarter, the company earned $321.8 million in net revenue compared to $261 million last year, and a net loss of $3 million compared to $11 million in the year-ago period.  As of April 4, Krispy Kreme has 1,515 stores and 7,371 Delivered Fresh Daily locations across the globe.

 

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