Dunkin' IPO Flies in Face of Social-Media Buzz |
| TheStreet.com - Jul 11, 2011 |
Dunkin' Brands(DNKN), owner of the doughnut-and-coffee chain as well as ice-cream purveyor Baskin-Robbins, is set to go public. Millions of people in the Northeast can't get enough of Dunkin' Donuts coffee. So how will its stock fare?
First, the basics: The company, co-owned by private equity investors Bain Capital, Carlyle Group and Thomas Lee, is seeking to sell more than 22 million common shares between $16 and $18 a share for net proceeds of up to $400 million. Dunkin amended its S-1, an initial public offering request form to the Securities and Exchange Commission, today. In it, Dunkin indicated that it would own 126 million common shares, following the deal.
That translates to a market value of more than $2 billion. The company was privatized at a net cost of about $2.4 billion in 2006, when the private-equity market was hot. If you're comparing the estimated market cap with the size of the private-equity investment and scratching your head, here's a noteworthy qualification: Even after the IPO, the private-equity owners will retain more than half of the outstanding stock. So they're not taking Dunkin' public at any kind of realized loss, nor are they exiting their investment entirely. The cash-flow-rich chain was, indeed, an attractive investment. Its profit stream is likely to enrich Bain, Carlyle and Lee for years to come.
Read Full Article from TheStreet.com
- Posted: 2011-07-11 13:12:51
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