Expectations were not met when the public listing was made for America’s most famous doughnut shop.
After being privatized by JAB Holdings for $1.35billion in 2016, shares of Krispy Kreme were able to make their much-anticipated return to the public markets on Thursday. Krispy Kreme’s market capital reached nearly $3 billion after shares began trading on Thursday afternoon. It had risen to nearly $3.4 billion by the end of the day.
Initial shares were priced at $17 but quickly climbed to $18. Krispy Kreme originally planned to price the deal between $21-$24, but low demand meant that it was initially priced below this range. Nevertheless, it had increased more than 20% by the end of Krispy Kreme’s first day and traded at $21 after-hours.
JAB is the investment vehicle for the Reinmann family of billionaires, valued at at least $16.5 million by Forbes estimates. Four billionaire heirs hired pros years ago to help them build a strategy to protect their family fortune, dating back to 1828 in Germany. The portfolio now includes Panera Bread and Au Bon Pain and Pret a Manger, Caribou Coffee, and Pret a Manger. JAB has also created several sandwich chains and coffee brands to compete with Starbucks and Dunkin’.
JAB has a 180-day lockup for insiders. So be on the lookout for stock drops after that.