Investors ate up shares of Krispy Kreme
Doughnuts Inc.'s $63 million initial public offering, a
rare Old Economy offering in an IPO market stuffed with
Krispy Kreme shares were trading 14-1/8 higher to 35-1/8 in
their trading debut on the Nasdaq, a gain of over 67 percent.
The Winston-Salem, N.C.-based company priced 3 million
shares at $21 each, above range, through joint lead underwriters
J.P. Morgan and Deutsche Banc Alex. Brown.
Krispy Kreme posted a net income of about $5.96 million from
revenues of $220.2 million in 1999. It has about 12.5 million
shares outstanding after the offering.
Krispy Kreme was founded in 1937 by Vernon Carver Rudolph in a
Winston-Salem storefront. After paying
fees to its underwriters, Deutsche Bank Alex Brown and JP Morgan,
the company plans to use the proceeds from the offering to to repay
debt, remodel some stores and finance expansion.
In recent years, the strictly Southern institution has ventured
into faraway markets such as Manhattan and Las Vegas. It now has
141 stores in 27 states, from New York to California.
Each store makes and sells 20 kinds of doughnuts. Its signature
item remains the Hot Original Glazed doughnut.
The Associated Press and Reuters contributed to this report