NEW YORK, US – Dutch Bros rang its IPO bell on the Nasdaq this Wednesday. The Oregon-based coffee chain made strong debuts in their first day of trading on the New York Stock Exchange.The first trade for Dutch Bros (ticker: BROS) was $32.50. It closed up 57.62% at $38.08. The IPO for Dutch Bros was priced Tuesday night at $23 a share, above the marketed range of $18 to $20. Dutch Bros sold more than 21 million Class A common shares in the offering, raising $484 million.
The firm was started by two brothers – Travis and Dane Boersma – who quit the dairy industry to sell coffee from a pushcart (equipped with a single espresso machine and a stereo) in the small city of Grants Pass in 1992.
Still led by one of the brothers, executive chairman Travis Boersma, the family-run business has now grown to more than 470 shops—known for their drive-through only format—spread across 11 states.
Dane died in 2009 at the age of 55 from amyotrophic lateral sclerosis, also known as Lou Gehrig’s disease, called ALS.
BofA Securities, JPMorgan and Jefferies were lead underwriters in a syndicate of 13 banks working on the deal. Proceeds are to be used to purchase additional Class A shares — the company is planning to have four classes of stock with differing voting rights.
Thanks to several “anti-takeover” provisions and a multi-tiered share structure, Boersma will retain 74% of the firm’s voting shares. The company’s sponsor, TSG Consumer Partners, holding all of the Class C shares.
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