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Krispy Kreme Cools Off in Second Day of Trading

Krispy Kreme eased in its second day of trading. After its IPO on Thursday, the shares swung widely and closed up 24% at $21.

Krispy Kreme  (DNUT) - Get Krispy Kreme Report shares in their second day of trading eased back from the doughnut chain's post-IPO jump. 

The Charlotte company had priced its initial public offering at $17 and on Thursday opened trading at $16.30.

The shares swung as low as $15.50, down 8.8%, before closing the day at $21, up 24%.

Krispy Kreme shares at last check were off 4.3% at $20.09. 

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The IPO price of $17 a share was 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 popular doughnut chain is controlled by JAB Holding, the Luxembourg group that also owns Panera Bread and Pret A Manger. 

JAB will continue to own nearly 78% of the stock after the IPO.

“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, the company said in its prospectus.

The IPO market set a record in the second quarter. According to a Renaissance Capital report, 113 IPOs raised $39.9 billion in Q2, marking the "busiest quarter for IPOs in over two decades."