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Krispy Kreme Raises $500 Million as Stock Makes Market Debut Thursday

The initial public offering of Krispy Kreme is priced at $17 a share, well below the marketed price range of $21 to $24.

The initial public offering of Krispy Kreme  (DNUT) - Get Report was priced at $17 a share, well below the marketed price range of $21 to $24.

The doughnut maker raised $500 million in the offering, below expectations of $640 million.

Krispy Kreme sold more than 29 million shares in the IPO, more than the planned sale of 27 million. The stock has a valuation of just below $2.8 billion.

The stock is expected to begin trading Thursday on the Nasdaq under the ticker symbol “DNUT.”

The popular doughnut chain is owned by JAB Holding, a Luxembourg-based conglomerate that also owns Panera Bread and Pret A Manger. JAB will continue to own nearly 78% of the stock after the IPO.

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Krispy Kreme is based in Charlotte.

Krispy Kreme initially went public 21 years ago during the dot-com bubble and then ran into trouble. JAB Holding took Krispy Kreme private in a $1.35 billion deal in 2016.

“Krispy Kreme is one of the most beloved and well-known sweet treat brands in the world,” the company said in its prospectus. “Over its 83-year history, Krispy Kreme has developed a broad consumer base, selling 1.3 billion doughnuts across 30 countries in fiscal 2020,” which ended Jan. 31, 2021.

“As an affordable indulgence enjoyed across cultures, races, and income levels, we believe that Krispy Kreme has the potential to deliver joyful experiences across the world,” the company said.

Krispy Kreme's listing follows the debut of Didi Global  (DIDI) - Get Report, the Chinese ride-hailing giant that debuted on Wednesday, ending up just 1% more than its IPO price of $14.