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IPO For Dunkin' Donuts Expected This Week

BOSTON (CBS) - Dunkin' Brands Group Inc.'s $400 million IPO is expected to debut on the Nasdaq this week under the ticker symbol DNKN.

Canton-based Dunkin' Brands, which owns the coffee and doughnut chain Dunkin' Donuts and the ice cream chain Baskin-Robbins, estimated its IPO share price earlier this month at between $16 and $18, which would allow the company to raise nearly $350 million in net proceeds.

Lisa van der Pool of the Boston Business Journal reports:

Renaissance Capital reports Dunkin's IPO is expected within the week, one of a dozen U.S. public offerings expected to get out by Friday. Last week, five companies reached the public markets, including Zillow. The online real estate service's shares rose to $60 in the first day of trading, highlighting investor appetite for IPO stocks.

The company also said last week that it plans to offer 25.6 million shares, including stock for Wall Street underwriters. The company expects to raise net proceeds of $348.4 million, assuming an IPO price of $17 per share. That net proceeds figure could rise to $401.4 million if underwriters exercise their option to purchase additional shares, Dunkin' said.

According to Bloomberg News, Monday, the $17 share price values Dunkin' Brands at $2.15 billion – 3.6 times trailing 12-month sales, compared with about 2.7 times for competitor Starbucks Corp. (Nasdaq: SBUX).

In 2009, Dunkin' hired at least two former Starbucks executives, including the firm's COO Paul Twohig, who worked as a senior executive at Starbucks Corporation and Panera Bread Company and Christine Deputy who is senior vice president and chief human resources officer at Dunkin' Brands. Twohig was subject to a non-compete lawsuit after his departure from Starbucks, according to the the Dunkin' IPO filing. Deputy worked as a vice president of partner resources for the Asia Pacific Region for Starbucks Corporation.


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