NEW YORK – Dunkin’ Brands Group Inc., the operator of Dunkin’ Donuts coffee shops, expanded its July 26 initial public offering to $486 million after its underwriters exercised an option to buy more shares.
Underwriters of the Dunkin’ offering exercised an over- allotment option to buy 3.3 million additional shares for the offering price of $19 on Tuesday, data compiled by Bloomberg show. That “greenshoe” option allowed the Canton, Mass.-based company to enlarge its IPO after earlier this week raising $423 million selling 22.3 million shares for the same price.
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Shares of Dunkin’ surged to $27.85 in their trading debut on Wednesday on the Nasdaq Stock Market, 47 percent higher than the offering price. The stock today advanced an additional 54 cents, or 1.9 percent, to $28.39 at 4 p.m. New York time.
Dunkin’s private-equity owners Bain Capital LLC, Carlyle Group and Thomas H. Lee Partners LP sold about 1.1 million shares each in the over-allotment, raising about $21 million apiece and reducing their respective stakes in the company to 25 percent, Bloomberg data show.
The 22.3 million shares sold in the IPO before the over- allotment were sold by Dunkin’, generating net proceeds of about $390 million, which it planned to use to repay debt, according to a filing with the U.S. Securities and Exchange Commission.
The Dunkin’ offering was led by JPMorgan Chase & Co., Barclays Plc, Morgan Stanley, Bank of America Corp. and Goldman Sachs Group Inc.
