It took only 10 days for JAB Holding Company to announce and deliver an initial stock offering for its coffee subsidiary JDE Peet’s. The goal was to raise $2 billion. The IPO gained $2.5 billion.
The company announced on May 19 its intention to place the offering on the Amsterdam exchange market. On May 29, the stock surged as high as 18% over its offering price of $35.
JDE Peet’s, itself a group within the JAB Holding structure, includes Peet’s Coffee, Stumptown, Intelligentsia and Mighty Leaf brands.
Under the stated IPO plan, a primary offering could raise as much as $768 million. That money would be used to repay company debts. A secondary offering of existing shareholders could garner another $1.4 billion. Those numbers turned out to be conservative estimates.
Peet’s remains strong in more than 100 countries serving about 130 billion cups of coffee or tea a year, the company says. Total revenue for the Peet’s group of brands generated $7.5 billion in fiscal year 2019.
The original Peet’s coffee was founded in 1966 by Alfred Peet. JAB Holding bought the company in 2012.
“We believe JDE Peet’s is well-positioned for growth and we look forward to attracting new shareholders who can participate in our exciting future,” JDE Peet’s chief executive Casey Keller said in a statement before the offering. “The coffee and tea categories have benefited in the past from attractive growth fundamentals and have proven to be resilient in times of economic downturn.”
After the IPO, Keller added that “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.”