UPDATE 1-JDE Peet’s valued at $17.3 billion in espresso IPO


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AMSTERDAM (Reuters) – Coffee maker JDE Peet’s JDEP.AS said on Friday its shares were priced at 31.50 euros each in an initial public offering, valuing the firm at 15.6 billion euros ($17.3 billion), as it became one of the few big companies to go public during the coronavirus crisis.

FILE PHOTO: A man wearing a face mask walks past a Peet’s coffee shop in Washington, U.S., May 19, 2020. REUTERS/Kevin Lamarque

Shares in the world’s No. 2 maker of packaged coffee, whose brands include Douwe Egberts, Peet’s Coffee and Jacobs, were expected to begin trading on Euronext in Amsterdam.

JDE Peet’s is raising 700 million euros in a primary issue, and existing shareholders JAB Holding and Mondelez (MDLZ.O) are selling an additional 1.55 billion euros, for a total of 2.25 billion euros. That represents a 16.5% stake in the company.

The company’s decision to go public despite an IPO market that has been largely closed since the coronavirus outbreak began to gather steam in March has proved fortunate.

Markets rallied and the offer drew big-name cornerstone investors, notably George Soros’s Quantum Partners and Fidelity Management and Research (FMR).

“We are thrilled to price this offer on Euronext Amsterdam during this extraordinary time,” said CEO Casey Keller in a statement.

“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.”

Restrictions on global travel and safety concerns meant that pre-listing road shows took place in digital-only format and high demand for the offer meant that bankers were able to wrap up in less than two weeks a process that usually takes more than a month.

JDE Peet’s, which also owns the Pickwick, Senseo, Tassimo, TiOra and L’OR brands, said in December that it has operations in 140 countries and annual revenue of about 7 billion euros.

It had revenue of 6.9 billion euros in 2019, with the bulk sold to supermarkets and businesses, though it also operates retail chain stores including Peet’s. Net profit in 2019 was 585 million euros.

It competes with Nestle (NESN.S) and Starbucks(SBUX.O), among others.

Reporting by Toby Sterling; Editing by Clarence Fernandez and Stephen Coates


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