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.
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."