Dutch Bros Coffee filed for a confidential IPO with the SEC on June 15. When is the company's IPO date? What can investors expect?
The Dutch Bros Coffee IPO date will be after the SEC completes its review process. The number of shares that will be offered and the price range of those shares still needs to be set.
The company’s interest in seeking an IPO was first reported in May. With backing by private equity firm TSG Consumer Partners, Dutch Bros Coffee was seeking an IPO valued at about $3 billion, Bloomberg reported.
Private equity firm holds a minority stake in Dutch Bros Coffee.
TSG Consumer Partners, which focuses its investments on the branded consumer sector, bought a minority stake in Dutch Bros Coffee in 2018. At the time, the coffee company planned to use the partnership to help it expand into other markets. The goal was to grow to 800 shops by 2023.
As of this past January, Dutch Bros Coffee operates in over 400 locations in nine states.
“TSG understands the vision of Dutch Bros and values our unique company culture and dedication to our people, customers and local communities. We’re continuing to invest in our people first, helping those who are determined and hungry design their lives and live their dreams. We have set ambitious growth and expansion goals, and we trust TSG to help us build on this momentum in the most strategic way possible,” said Dutch Bros Coffee co-founder and CEO Travis Boersma in a 2018 press release.
What is Dutch Bros Coffee?
Dutch Bros Coffee was founded in 1992 by brothers Dane and Travis Boersma. The Boersma brothers were dairy farmers looking for a change. So, they bought an espresso machine and started a coffee business in their barn, according to the company website.
“One of the most rewarding things in this change of occupation was going from smelling cow manure to smelling coffee. You’d open the bag, and it was like heaven,” said Dane on the company website.
Besides its focus on creating “killer coffee,” the Grants Pass, Ore. company also gives back to the communities its serves through its Dutch Bros Foundation and local franchises.
In May, Dutch Bros and its customers raised $1.9 million for the Muscular Dystrophy Association through its annual "Drink One for Dane" fundraiser. Dane was diagnosed with ALS (Amyotrophic Lateral Sclerosis) and died in 2009 from complications of the disease.
How to buy stock in Dutch Bros Coffee
Since Dutch Bros Coffee filed for a confidential IPO, information about the company and its plans will be limited. However, by filing a confidential S-1 form, the company should have less than $1 billion in revenue.
There isn't a set date for the public offering. Information on the Dutch Bros Coffee IPO will only become available 15 days before the date the public offering starts. The company could also decide not to move forward with the IPO.
If Dutch Bros Coffee proceeds with its IPO, it will have to designate how many shares it will sell and the price range for those shares.