JDE Peet’s indicative price range for IPO values it at £14.35 billion

Written by: Wajeeh Khan
May 26, 2020
  • JDE Peet’s indicative price range for IPO values it in the range of £13.36 billion to £14.35 billion.
  • The world's 2nd top coffee maker aims to raise £2 billion with its listing on Euronext Amsterdam.
  • IPO will represent 17% of the company including overallotments & primary and secondary sales.

JDE Peet’s is scheduled to go public in June. On Tuesday, the company announced an indicative price range for its IPO that valued it in the range of £13.36 billion to £14.35 billion.

JDE currently owns multiple brands including Jacobs, Douwe Egberts, and Peet’s Coffee and is among a handful of large companies that are planning an initial public offering amidst the Coronavirus pandemic that wreaked havoc on global businesses in March.

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The company justified its move highlighting the historical trends of continued coffee consumption amidst economic crisis like that of COVID-19. As per JDE, investors like George Soros have already shown interest in its IPO.

JDE aims to raise £2 billion with its listing on Euronext Amsterdam

According to the sources, JDE is considering listing on Euronext Amsterdam and wishes to raise about £2 billion from its initial public offering. The indicative price implies that its shares are likely to be priced between £26.90 to £28.90. JDE will be available for the public to trade from June 3rd.

The Dutch-headquartered company is expected to put 23.3 million new shares on sale. It will direct around £628 million of the total raised funds to make debt repayments. JDE also highlighted on Tuesday that prominent shareholders like Mondelez and Acorn Holdings (JAB subsidiary) are also interested in selling existing shares up to 25.8 million each in the IPO. Including overallotments and sales (both primary and secondary), JDE’s initial public offering will represent 17% of the company.  

According to Olivier Goudet of the privately-held German conglomerate, JAB Holding Company:

“We believe that, JDE Peet’s is well-positioned to be at the forefront of reopening the IPO market.”

Goudet is set to take over the role of Chairman at JDE Peet’s.

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JDE says cornerstone investors lined up to purchase £682 million worth of shares

As per JDE, cornerstone investors currently include Palindrome Master Funds, Soros’s Quantum Partners, JAB Holding, and Fidelity Management and Research (FMR) that have lined up to purchase shares worth £682 million.

Owing to COVID-19 restrictions on travel, the Amsterdam-headquartered company is resorting to digital financial roadshows. The offer period, JDE added, will close on June 2nd.

The world’s 2nd top packaged coffee maker announced Goldman Sachs, BNP Paribas, and JPMorgan as global coordinators for its initial public offering.