After filing for an initial public offering in June, Grants Pass, Ore.-based coffee chain Dutch Bros. Inc. announced it is seeking a $3.3 billion IPO valuation, or $18-$20 per share, according to a revised S-1 form filed with the U.S. Securities and Exchange Commission Tuesday. The company also plans to use the ticker symbol, BROS.
“The most important thing for us was building customer loyalty. If we could figure that out, we were winning. So, when people would come back day after day, we rolled out the red carpet,” Travis Boersma, cofounder and executive chairman of Dutch Bros. said in a letter accompanying Tuesday’s SEC filing.
According to the filing, Boersma — who started the company with his brother Dane, who passed away in 2009 from ALS — will own nearly three-quarters of the voting power for Dutch Bros.’ common stock. Dutch Bros’ Coffee’s partner, private equity firm TSG Consumer Partners, will own approximately 22% of voting power after initially investing in the company in 2018.
“Our vision for the company is simple: a bright future,” Boersma continued in his letter. “That vision isn’t limited to Dutch Bros. It’s about the whole community and how we can be of value, not just to our customers’ communities but also to the communities of origin where we source our coffee. It’s about helping people develop and grow.”
He also announced in his letter that they plan to donate 1% of net proceeds from their IPO to various charitable organizations.
After 30 years in operation, Dutch Bros. Coffee currently owns 470 drive-thru cafes in 11 states. In 2020, revenues increased 61.3% despite the challenges of COVID-19, though expenses were also up, which cut net income by almost 80%.
This has been a record-breaking year already for U.S. public offerings. First Watch just registered for a possible IPO this week. Krispy Kreme has plans to go public later this year, and Sweetgreen just announced an IPO in June. In July, Portillo’s confirmed that the company has plans to go public and had just submitted a draft registration, while Olo was also one of the highest-profile public offerings this year, with Noah Glass’ digital platform beginning to trade publicly in March.
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