Coffee rush for JDE Peet's as fast-tracks $2.9 billion IPO

AMSTERDAM (Reuters) – Coffee maker JDE Peet’s plans to make its stock market debut on Friday, sooner than originally planned, after reporting strong investor demand for one Europe’s few large initial public offerings during the coronavirus crisis.

The world’s No. 2 maker of packaged coffee, whose brands include Douwe Egberts, Peet’s Coffee and Jacobs has attracted buyers including George Soros’ Quantum Partners and is set to raise 2.6 billion euros ($2.9 billion) in the IPO.

“We caught a good market window. Investors are sitting on a lot of cash and JDE is exactly what is working in this economic environment,” a person familiar with the deal said on Thursday.

JDE’s many brands are sold in supermarkets around the world, which account for 79% of sales, while sales in chains such as the U.S-based Peet’s make up the rest.

Banks running JDE’s IPO gave an indicative price range of 30 euros to 32.25 euros per share on Tuesday, valuing JDE at up to 16 billion euros ($17.5 billion)..

Coronavirus travel restrictions have meant JDE’s investor roadshow has been virtual, with none of the face-to-face meetings normally associated with IPOs.

But this format may have made the process easier, particularly as there are fewer IPOs to choose from now.

“Investors have far less choice than normally, when they have to look at dozen opportunities simultaneously, so they reacted very fast”, the source familiar with the deal said.

Shares in JDE are due to begin trading on the Amsterdam stock exchange after their final pricing on Friday instead of June 3, the company said in a statement.

JDE’s banks said that the order books from investors were more than full at 31.50 euros, with 82.1 million shares on offer including so-called greenshoe overallotments, or 2.6 billion euros worth, representing roughly a 17% stake.

Orders placed below 31.50 euros would risk missing being allocated shares, the banks said in a note to investors.

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