NEW YORK (AP) — The parent of Dunkin’ Donuts plans to raise as much as $401 million before expenses through its initial public offering of 22.3 million shares, which are expected to price between $16 and $18 apiece.
Dunkin’ Brands Group Inc., the parent company of Dunkin’ Donuts and Baskin-Robbins, disclosed the estimated pricing in a regulatory filing on Monday.READ MORE: Gov. Charlie Baker: Decision Not To Run For Third Term Was 'Complicated And Difficult'
The company anticipates proceeds of about $348.4 million after deducting expenses if the IPO is priced at the midpoint of $17 per share.
Dunkin’ is giving the underwriters a 30-day option to buy up to an additional 3.3 million shares.
The company previously announced that it would use its proceeds from the stock offering to pay down about $475 million in high-interest debt owed to banks. That money was borrowed partly to pay a $500 million dividend to some of the company’s current shareholders.READ MORE: DA: Braintree Police Justified In Shooting Death Of Man Who Killed K-9, Wounded Officers
Dunkin’ is also hoping it will have money left over to fund expansion plans.
The Canton, Mass., company’s stores are concentrated in the northeastern U.S., where it has about one location for every 9,700
people. Now it wants to expand into the western U.S., where it averages one store per 1.2 million people.
The company plans to trade on the Nasdaq under the “DNKN” ticker symbol. The timing of the IPO has not been disclosed. Dunkin’ Brands has about 16,200 locations worldwide, behind Starbucks Corp.’s 16,900 locations.MORE NEWS: Patriots Place Kyle Dugger On Reserve/COVID List After Positive Test
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