The public listing for the most iconic doughnut shop in America glazed over expectations.
Shares of Krispy Kreme made their highly anticipated return to public markets on Thursday after being taken private by JAB Holdings in 2016 for $1.35 billion. After shares started to trade Thursday afternoon, Krispy Kreme’s market cap rose to nearly $3 billion. By the end of the day, it had hit nearly $3.4 billion.
Trading under ticker DNUT, shares initially priced at $17 per share but soon inched up past $18. Krispy Kreme had initially planned to price between $21 and $24, but lackluster demand had the deal price initially below that range. By the end of Krispy Kreme’s first day, it had risen more than 20% and hit $21 in after-hours trading.
JAB is the investment vehicle of the billionaire Reinmann family, worth at least $16.5 billion by Forbes’ estimates. The four billionaire heirs brought in pros years ago to build a strategy for their family fortune, which extends back to Germany in 1828. The portfolio is now heavy on food companies and includes Panera Bread, Au Bon Pain, Pret a Manger and Caribou Coffee, as JAB has rolled up several coffee brands and sandwich chains to compete with the likes of Starbucks, Dunkin’ and bigger fast-food companies.
Insiders at JAB have a lockup on selling shares for 180 days—watch out for a stock drop after that.