MILAN – Coffee giant JDE Peet’s IPO drew strong investor on Tuesday, at the Euronext stock exchange in Amsterdam. Books were covered in excess of the full offer size within hours of opening at an indicative price range of 30-32.25 euros per share, valuing the world’s largest pure-play coffee and tea group by revenue at up to 16 billion euros ($17.5 billion).
JDE Peet’s is selling 23.3 million shares, with shareholders Mondelez International Inc. and Acorn Holdings, a company owned by JAB and other investors, offloading as many as 25.8 million shares each. The offering also includes an over-allotment option of about 337.5 million euros that would take the total offer size to
The company said it had lined up several “cornerstone” investors to buy 761 million euros’ worth of shares, including Soros’s Quantum Partners and Palindrome Master funds, Fidelity Management and Research (FMR) and JAB Holding itself.
“We believe that, JDE Peet’s is well positioned to be at the forefront of reopening the IPO market,” said Olivier Goudet of JAB, who is set to become chairman of JDE Peet’s.
The European IPO market could open up more rapidly than expected, if JDE Peet’s proves to be a success, Gavin Launder, a fund manager at Legal & General Investment Management, told Bloomberg on Tuesday.
Judging by the speed at which the book was covered, the IPO seems to be faring well, Launder said. The listing is attractive because JDE Peet’s enjoys steady growth as a pure-play coffee business, while offering a high payout ratio, he added.
After announcing the IPO last week, JDE Peet’s said coffee demand has been resilient during the downturn, with consumption moving to people’s homes from offices and cafes during the lockdown.
With roadshows digital-only due to travel restrictions, the offer period closes on June 2 with final pricing on June 3. JPMorgan, BNP Paribas and Goldman Sachs are serving as global coordinators for the sale.
The company plans to use the IPO proceeds to repay debt and for further acquisitions in order to challenge Nestlé’s leadership in the world coffee market.