As the world looks to come out of this pandemic in as brisk and effortless a way as possible, various companies are being targeted by investors. One area of interest for investors therefore is software companies targeting small and medium-sized businesses. Indeed, in this regard, Toast, via the upcoming TOST stock IPO, may be a relevant company to watch.
Toast provides a software platform that allows for restaurants to seamlessly operate an omnichannel business model. Indeed, this has become increasingly important in the wake of the Covid-19 pandemic. Restaurants have been forced to transition to an on-demand delivery model with online ordering capabilities. Accordingly, Toast’s platform, which provides these capabilities, has become the lifeblood of a growing number of restaurants across the country.
Indeed, it’s perhaps unsurprising to see Toast go public right now. The company’s business has absolutely boomed, with more than 48,000 restaurant partners. Additionally, the red-hot IPO market continues on, with more deals expected to be done this year than any other on record.
For those intrigued by what Toast has to offer, let’s dive into some of the details of this IPO.
What Investors Need to Know About the TOST Stock IPO
As mentioned, Toast has garnered a tremendous amount of attention from investors thus far. So much so, the company recently announced it raised its IPO price range.
It’s expected TOST stock will be offered at a range of $34 to $36 when it starts trading on Sept. 22. This is markedly higher than the initial $30 to $33 range provided by the company in its initial filings.
As a result of this higher range, it’s expected Toast could be valued as high as $18 billion. Additionally, the total proceeds from this transaction could top $780 million at the higher end of the range.
Toast will look to use this capital to fund the continued expansion of its software in new markets. As a top prospective growth stock, Toast is likely to see a lot of activity on opening day. Investors looking to get a piece of the $38 billion in gross transactions processed by Toast are likely to want to jump in, or at least watch TOST stock closely.
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.