Dunkin' Brands Offers IPO Update
22.3 million shares expected to price between $16 and $18 each
CANTON, Mass. -- Dunkin' Brands plans to raise as much as $401 million before expenses through its initial public offering (IPO) of 22.3 million shares, which are expected to price between $16 and $18 apiece, reported the Associated Press.
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Dunkin' Brands, parent company of Dunkin' Donuts and Baskin-Robbins, disclosed the estimated pricing in a regulatory filing on Monday.
The company anticipates proceeds of about $348.4 million after deducting expenses if the IPO is priced at the midpoint of $17 per share.
Dunkin' is giving the underwriters a 30-day option to buy up to an additional 3.3 million shares.
The company previously announced that it would use its proceeds from the stock offering to pay down about $475 million in high-interest debt owed to banks. That money was borrowed partly to pay a $500 million dividend to some of the company's current shareholders.
Dunkin' is also hoping it will have money left over to fund expansion plans.
The company's stores are concentrated in the northeastern United States, where it has about one location for every 9,700 people. Now it wants to expand into the western United States, where it averages one store per 1.2 million people.
The company plans to trade on the Nasdaq under the "DNKN" ticker symbol. The timing of the IPO has not been disclosed.
Canton, Mass.-based Dunkin' Brands has about 16,200 locations worldwide.