By Kuldip K. Ambastha
Krispy Kreme, Inc. (DNUT), a specialty retailer mainly focused on doughnuts, had its second IPO during this past trading week. Thursday, July 1, 2021 was the first trading day for its stock on the NASDAQ Global Select (NasdaqGS) Market platform. The stock reference price range was initially set at $21-$24 per share, but the final reference price ended up at $17 per share. On Thursday, July 1, 2021, the stock opened at $16.30 per share and closed at $21.00 per share. On Friday, July 2, 2021, the stock closed at $19.12 per share.
Despite the volatility seen in these first two trading days, Krispy Kreme CEO Michael Tattersfield is bullish about the long-term prospects for the company. Krispy Kreme has aggressive international and U.S. expansion plans which may drive growth in the future. In 2016, JAB Holdings had taken Krispy Kreme private, after which Krispy Kreme management claims significant brand, cultural, and business model changes have been made. Through the IPO process, 29.4 million shares were sold and a total of $500 million was raised. Krispy Kreme was unable to raise $640 million as initially hoped for, and the $500 million will be used to pay down debt.
Keywords – Krispy Kreme, Inc., Krispy Kreme Inc., Krispy Kreme, DNUT, JAB Holdings, NASDAQ Global Select Market, NasdaqGS, NASDAQ, IPO, Initial Public Offering, initial public offering, public, private, specialty, retail, retailer, doughnut, doughnuts.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in DNUT.
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