Restaurant-software maker Toast valued at nearly $33 billion as shares surge in debut By Reuters
© Reuters. Chris Comparato, CEO of Toast Inc, and Toast Inc. co-Founder Steve Fredette attend their company’s IPO at the New York Stock Exchange (NYSE) in New York City, U.S., September 22, 2021. REUTERS/Brendan McDermid
(Reuters) -Toast Inc fetched a valuation of nearly $33 billion in its New York Stock Exchange debut on Wednesday, as shares of the restaurant software provider jumped 63%, underscoring a deep investor appetite for new tech stocks.
The initial price for the stock was $40, but it opened at $65.26, as opposed to its original public offering price.
Toast’s listing coincides with a period when the demand for food delivery online has increased dramatically due to pandemic. Customers living in remote areas can order through DoorDash Inc. Uber Eats. Grubhub.
This software company, based in Boston, helps restaurants integrate payment and manage orders online.
Founded in 2011, Toast counts TPG, Tiger Global Management and American Express (NYSE:) Ventures among its backers. The company partnered almost 48,000 restaurant outlets and processed $38 Billion in total gross payments volumes during the 12-month period ending June 30.
In February 2020, the company received a $5 billion funding round. This was just before the COVID-19 epidemic.
Toast reduced its workforce to meet the drop in restaurant revenue due to restrictions and lockdowns.
The new products were contactless ordering, indoor meal payments, curbside notifications, takeout delivery and flat-fee orders.
Toast lost $235 million in six months ending June 30 from $125million a year ago. But, revenues increased by more than twofold to $704 millions.
It raised about $869.6million by selling 227,000 shares during its IPO. The company’s IPO price was higher than the earlier target range of $34-$36 per share.
Goldman Sachs (NYSE:), Morgan Stanley (NYSE:) and J.P. Morgan were the lead underwriters for Toast’s IPO.
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