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Dunkin' begins trading, IPO nets $423M

Dunkin' begins trading, IPO nets $423M

Stock soars immediately as investors buy in

Dunkin’ Brands Inc. sold 22.25 million shares for $19 each in its initial public offering Wednesday, garnering about $423 million.

The parent company to Dunkin’ Donuts and Baskin-Robbins originally set the IPO price range between $16 and $18 per share. When the stock began trading on NASDAQ today, it opened at $24.97, and it had risen as high as $29 during afternoon trading. From the previous day’s close, or the $19 IPO price, the stock has jumped as much as 50 percent.

The stock closed at $27.85, up 46.6 percent.

Dunkin’ Brands shares are trading under the symbol DNKN.

With about 126.4 million shares in common stock now outstanding, the IPO price values Dunkin’ Brands at $2.4 billion, the same value the company was purchased for in 2006. Private-equity groups Bain Capital, The Carlyle Group and Thomas H. Lee Partners made that acquisition.

The funds raised during its IPO will be used to pay down senior debt.

The IPO underwriters also have 30 days to buy another 3.3 million shares, which would raise an additional $63 million.

Headquartered in Canton, Mass., Dunkin' Brands has
9,760 Dunkin' Donuts and 6,433 Baskin-Robbins locations. It had system-wide sales of approximately $7.7 billion at the end of 2010.

Watch a video of Bloomberg reporters discussing Dunkin’

Contact Bret Thorn: [email protected].
Follow him on Twitter: @foodwriterdiary

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