Dutch Bros Coffee plans to raise as much as $484 million in its upcoming IPO, according to a recent SEC filing.
The 470-unit chain plans to sell 21,052,632 shares, with underwriters having the option to purchase 3,157,894 additional shares. The stock price will be between $18 and $20 per share. At that range—assuming underwriters exercise their option—Dutch Bros is projecting to raise between $435.8 million and $484 million and be valued between $2.97 billion and $3.3 billion.
Dutch Bros will have Class A, B, C, and D stock, with Class A having one vote per share, Class B and C having three votes per share, and Class D having 10 votes per share. Co-founder Travis Boersma will hold all Class B shares and investor TSG Consumer Partners will hold all Class C shares. A host of other investors will hold Class D shares. In total, Boersma will control 74 percent of stock while TSG will garner roughly 22 percent.
The company said it intends to use net proceeds from the initial public offering to purchase additional shares, pay off $198.8 million in outstanding borrowings, and donate 1 percent to charitable causes over the next 10 years. The brand intends to list its stock as “BROS” on the New York Stock Exchange. The brand is scheduled to begin trading on September 15.
Dutch Bros was founded by Travis and Dane Boersma in 1992 when the brothers began selling espresso out of a pushcart in Grant Pass, Oregon. The duo purchased their first drive-thru location in 1994. Roughly 30 years later, the menu features a lineup of hot and cold espresso-based beverages, cold brew coffee products, tea, lemonade, smoothies, the proprietary Dutch Bros. Blue Rebel energy drinks, and curates items from a secret menu. The Blue Rebel drink represents the largest mix at 24 percent.
In the past five and a half years, the chain has grown from 254 stores in seven states to 471 locations in 11 states as of June 30. Of that total, 264 were franchised and 207 were company-owned. Since 2008, the brand has only awarded franchises to existing operators. In the first half of 2021, the company entered Texas and Oklahoma for the first time and achieved record-breaking sales. In October 2018, Dutch Bros announced that it sold a minority state to TSG, with the goal of reaching 800 stores in five years.
Krispy Kreme was the first restaurant to reach the stock market this year, after a five-year absence. Quick-service chains Portillo's and Sweetgreen are planning IPOs, as well. Earlier in the year, Panera and Torchy's Tacos were both linked to potential offerings, but neither have made an official announcement.