Dunkin' Brands IPO Surges 50% |
| Wall Street Journal - Jul 27, 2011 |
Dunkin' Brands Group Inc.'s stock surged in its first day of trading Wednesday, opening up 32% post-IPO and rising 50%-plus by midday, indicating that investors' appetite for public offerings isn't limited to tech stocks.
The coffee and doughnut shop chain's first stock trade on the Nasdaq was $25 a share, up from its initial public offering price of $19. It sold 22.25 million shares at a price above its expected $16 to $18 range. The stock was changing hands recently at $28.74, up 51%.
Dunkin', which has a heavy debt load, will spend the next six months paying it down, Chief Executive Officer Nigel Travis said in an interview. "It's a leverage level we're comfortable with. We've managed through two refinancings this year to reduce our interest level by half and we have a fabulous business model based on strong cash flow," he said.
Dunkin', which also franchises Baskin-Robbins ice cream shops, had attracted strong investor interest in the week leading up to its IPO, thanks to a well-known brand and the company's ability to expand its store base both in the U.S. and abroad.
Read Full Article from Wall Street Journal
- Posted: 2011-07-27 12:59:38
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