S. Oregon coffee chain, Dutch Bros, sets the date for its IPO on September 15, which is possibly the largest in Oregon
Southern Oregon’s drive-thru coffee chain Dutch Bros has set Wednesday, September 15, its IPO date, when its shares will trade under the symbol “BROS” on the New York Stock Exchange.
It is the largest initial public offering in Oregon history, raising as much as $ 484 million. The Grants Pass-based chain plans to use $ 200 million of the proceeds to pay off debt and will use other funds to buy back shares and grow the business. Dutch Bros said it will donate 1% of the proceeds from the IPO to charity over the next 10 years.
Founded in 1992, the company has grown from a single coffee cart to more than 480 stores in the west. Dutch Bros said in filings related to its IPO that it is hoping to have 4,000 deals one day.
In addition to simple Americanos, Dutch Bros offers a range of frothy drinks, cold brews and energy drinks. The company said in its regulatory filings that its Blue Rebel energy drinks accounted for nearly a quarter of its sales last year.
Dutch Bros said it plans to sell shares for between $ 18 and $ 20 apiece. It plans to price the shares on Tuesday night according to the New York Stock Exchange’s public calendar.
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At the high end of the price range, the company would be valued at $ 3.3 billion and would be Oregon’s seventh most valuable public company.
Co-founder Travis Boersma, executive chairman of Dutch Bros, would own 43% of the shares after the IPO – valued at up to $ 1.4 billion.
In the filings, the company outlined an unusual share structure that would give Boersma 74% of the company’s voting rights. The company’s articles of association also contain provisions that would make a hostile takeover difficult for a contractor.
Such provisions could pause investors. And newly listed companies sometimes struggle to adapt to public markets and Wall Street expectations.
Dutch Bros has grown rapidly, with sales increasing 27% to $ 327.4 million last year. Sales increased 51% in the first six months of 2021.
However, profits fell sharply last year, from $ 28.4 million in 2019 to $ 5.8 million in 2020. Financial records show that Dutch Bros’ spending on the operation and management of the Company have grown enormously in the past year in view of the enormous expansion.