NEW YORK ( TheStreet) -- Dunkin' Brands, the parent of the Dunkin' Donuts and Baskin Robbins chains, Tuesday priced its initial public offering at $19 per share, above its estimated range of $16-$18.
The company, which was bought by a private equity consortium including Bain Capital, Carlyle Group and Thomas H. Lee Partners back in 2006 for $2.4 billion, is selling 22.25 million shares in its market debut to raise roughly $423 million. The deal includes an over-allotment option for the sale of an additional 3.34 million shares.
The stock is expected to start trading Wednesday on the Nasdaq exchange under the symbol "DNKN."Dunkin' Brands filed for the offering in late May. While demand for the shares was enough to result in the above-range pricing, the company did have $1.87 billion in debt on its balance sheet as of March 26. The company posted a loss of $1.7 million for the March quarter on revenue of $139.2 million, down from a profit of $5.9 million on revenue of $127.4 million in the same period a year earlier, according to its Form S-1 registration statement filed with the Securities and Exchange Commission. The company gets the majority of its revenue from franchise fees and royalty income, which totaled $86 million in its latest quarter. At the end of 2010, there were 9,760 Dunkin' Donuts stores worldwide, including 6,772 franchised restaurants. Baskins Robbins has more than 6,000 locations in 35 countries. This week is a busy one for IPOs with 11 offerings on tap. Excluding Dunkin' Brands, Greenwich, Conn.-based Renaissance Capital estimates 84 IPOs have priced so far this year, up 18% from a year ago, with proceeds totaling $26.7 billion, an increase of 148% from 2010 on a year-to-date basis. The top IPO performers of 2011 include MakeMyTrip (MMYT - Get Report), up 167%; Vera Bradley (VRA), up 147%; Youku.com (YOKU - Get Report), up 138%; LinkedIn (LNKD - Get Report), up 127%; and MolyCorp (MCP), up 108%. The new issues seeing the biggest declines this year are FriendFinder Networks (FFN), down 55%; NetQuin Mobile (NQ), down 54%; NupatheM (PATH), down 38%; Mecox Lane (MCOX), down 37%; and Acelrx Pharmaceuticals (ACRX - Get Report), down 35%. -- Written by Michael Baron in New York.
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