JDE Peet's IPO values coffee maker at up to $17.5 billion

AMSTERDAM (Reuters) – The world’s No. 2 packaged coffee maker, JDE Peet’s, set an indicative price range on Tuesday for its initial public offering that implies a market value of as much as 16 billion euros ($17.5 billion).

JDE, owner of brands including Peet’s Coffee, Douwe Egberts, and Jacobs, is one of few large companies willing to brave an IPO market that has been almost completely shut since the coronavirus outbreak spread globally in March.

The company is counting on the resilience of coffee consumption during economic downturns and said the IPO has attracted investors including George Soros. JDE aims to raise around 2.25 billion euros in total from the issue on Euronext Amsterdam, according to its prospectus.

It set an indicative price range of 30-32.25 euros per share, implying a market value of 14.9 billion-16.0 billion euros, with trading due to begin on June 3.

The Dutch-based company plans to raise about 700 million euros to pay down debt, selling 23.3 million new shares.

In its prospectus, JDE said existing major shareholders Acorn Holdings – controlled by German investor JAB – as well as Mondelez (MDLZ.O) will also each sell up to 25.8 million existing shares in the offer. Including all primary and secondary sales, and overallotments, shares on offer represent 17% of JDE.

“We believe that, JDE Peet’s is well positioned to be at the forefront of reopening the IPO market,” said Olivier Goudet of JAB, who is set to become chairman of JDE Peet’s.

The company noted it has lined up “cornerstone” investors to buy 761 million euros’ worth of shares, including Soros’s Quantum Partners and Palindrome Master funds, Fidelity Management and Research (FMR) and JAB Holding itself.

With roadshows digital-only due to travel restrictions, the offer period closes on June 2 with final pricing on June 3.

(This story corrects paragraph 3 to say JDE aims to raise 2.25 bln euros (not 1.6 bln euros) of new and existing shares, corrects paragraph 6 to say that shareholders will sell up to 25.8 million existing shares each (not combined) and corrects size of float to 17% (not 10%) of JDE)

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