A company that goes public and causes a sensation on Wall Street is not exactly uncommon. But when it comes to an IPO for a coffee company, it’s new to me. And when that IPO makes the owner of the company a certified billionaire – with a B – well, it’s stratospheric. And that’s exactly what happened today with the Dutch Bros coffee chain making their public debut, making owner Travis Boersma a person with many commas.
We reported last month that Oregon-based coffee company Grants Pass, with nearly 500 locations in 11 states, is going public in the near future. Turns out this time was yesterday, September 15th, and the results were staggering. As reported by Yahoo Finance, Dutch Bros, or BROS as they are known on the New York Stock Exchange, opened the day selling at $ 23 a share. With the IPO, the brand hoped to reach a valuation of $ 3 billion. They did and then some.
By noon, the company’s price had already risen 48% to $ 34.01, giving it a valuation of $ 5.6 billion at the time. Boersma, the largest shareholder and former dairy farmer, saw his own value reach $ 2.3 billion. (Quick calculations show he owns around 41% of the business.)
It was at noon. The price peaks at just under $ 40 per share before descending a bit to earth. At the end of the day, the price on Dutch Bros. over 21 million Class A common shares landed at $ 36.68, an increase of almost 60% from the opening price. This puts the valuation of companies somewhere in the range of $ 6.04 billion, adding an additional $ 150 million to the billion Boersma.
Even with the influx of cash, Dutch Bros. President and CEO Joth Ricci says the company will continue on the steady growth path it has set for itself, which includes adding new locations in the States. -United. Ricci also says the Dutch brothers will stick with what works for them – cafe-and-drive – instead of adding “new categories like food” to their menu.
We previously joked that with the IPO, Dutch Bros. could afford to hire both Macklemore AND Ryan Lewis. But after the first day maybe they could buy them straight away, so who’s laughing now?
Zac Cadwalader is editor-in-chief of Sprudge Media Network and editor-in-chief based in Dallas. Read more Zac Cadwalader on Sprudge.