Earlier this week, we reported on an upcoming initial public offering (IPO) that had the potential to be an impressive open. Certainly, investors in Dutch Bros (NYSE:BROS) have gotten their dose of excitement. Currently, shares of BROS stock are trading more than 60% higher over the company’s IPO price.
This IPO is perhaps the most highly anticipated one in some time. As a fast-growing coffee chain out of Oregon, investors may be looking at Dutch Bros as a potential Starbucks (NASDAQ:SBUX) in the making.
Indeed, the company’s business models and modest starts share a lot of similarities. Brand value is everything in the quick service coffee space. And Dutch Bros has both the brand and business model growth investors seem to like.
Currently, Dutch Bros has 470 locations spread across the western U.S. However, should the company be able to utilize the capital markets to accelerate its growth, expectations are that this company could be a key competitor in North America and abroad for the likes of Starbucks.
Perhaps it’s too soon to tell Dutch Bros’ story. However, investors looking for a slice of the action have certainly piled into this stock today like it’s cheap.
Let’s dive into a few things investors may want to know about Dutch Bros as it begins trading.
What to Know About Dutch Bros
- Today, Dutch Bros announced it would be increasing its IPO price to $23 per share.
- This values the company at $3.8 billion, well above the $3.3 billion expected as a result of the company’s previously provided IPO range of $18 to $20 per share.
- Indeed, it appears the amount of institutional interest in this IPO led to the raise.
- Accordingly, Dutch Bros expects to bring in $484 million from this offering, a substantially higher amount.
- The company will use this growth capital to invest in growing its footprint across the U.S.
- As a result of this deal, Dutch Bros has become the seventh-largest Oregon-based company today.
- At today’s peak, BROS stock showed gains of nearly 75% on its first day.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.