By
Bhushan Akolkar
April 12th, 2024
JDE Peet’s is the largest IPO that’s been filed in the region this year, followed by the March flotation of Saudi eponymous health care company in Tadawul for $699 million.
Coffee company JDE Peet’s Coffee IPO drew strong investor interest as the company opened its books on Tuesday, at the Euronext stock exchange in Amsterdam.
This is the early evidence of booming demand for an issue that aims to raise 2.3 billion euros ($2.5 billion) and encourage an IPO market that, due to coronavirus outbreak, found itself on a death bed.
Books were covered in the exuberance of the full offer size within just a few hours of opening, a book-runner said, at a suggestive price range of 30-32.25 euros per share, making the world’s No. 2 packaged coffee maker worth more than 16 billion euros ($17.5 billion).
JDE, owner of brands including Peet’s Coffee, Douwe Egberts, and Jacobs, said the IPO has drawn the attention of investors including George Soros’ Quantum Partners and trading on Euronext Amsterdam will start on June 3.
Peet’s Coffee Is One of the Bravest to Enter IPO Market in 2020
Almost 80% of JDE Peet’s business involves coffee consumed at home, including beans, instant, capsules and pods. The company, which also owns the Jacobs, Douwe Egberts and L’OR brands, sells coffee and tea in more than 140 countries and had revenue of €6.9 billion ($7.5 billion) in 2019.
It is one of few large companies that dared to enter an IPO market that has been almost completely shut since the COVID-19 pandemic spread through the global markets starting in March. The company also counts on the flexibility for coffee demand during the economic recession.
The Dutch-based company stated that it will sell 23.3 million new shares in the issue, in order to raise about 700 million euros to pay down debt.
Existing major shareholders Acorn Holdings, that is under control of German investor JAB, the investment firm behind Peet’s, Panera and Pret A Manger, together with Mondelez will also each sell up to 25.8 million existing shares in the offer.
Together with all primary and secondary sales, and overallotments, shares on offer represent 17% of JDE and will raise around 2.25 billion euros in total.
Olivier Goudet of JAB is said to become chairman of JDE Peet’s and he said:
“We believe that, JDE Peet’s is well positioned to be at the forefront of reopening the IPO market.”
Investors to Buy 761 Million Euros’ Worth of Shares
The company also stated it had lined up several “cornerstone” investors to buy 761 million euros’ worth of shares. Its indicative price range represents a market value of 14.9 billion-16.0 billion euros.
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 also stated it plans to focus on widening its “household penetration in the United States, driving growth in emerging markets, expanding its retail coffee stores business in China and capturing attractive out-of-home opportunities.”
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