A spot of tea: DAVIDsTEA sets terms for $77 million IPO

DAVIDsTEA, which sells loose-leaf and pre-packaged teas across 158 stores primarily in Canada, announced terms for its IPO on Tuesday.

The Quebec, Canada-based company plans to raise $77 million by offering 5.1 million shares (41% insider) at a price range of $14 to $16. At the midpoint of the proposed range, DAVIDsTEA would command a fully diluted market value of $388 million.

Competitor Teavana went public in July 2011, and Starbucks bought the company for $670 million in November 2012.

DAVIDsTEA, which was founded in 2008 and booked $142 million in sales for the 12 months ended January 31, 2015, plans to list on the NASDAQ under the symbol DTEA. Goldman Sachs, J.P. Morgan and BofA Merrill Lynch are the joint bookrunners on the deal. It is expected to price during the week of June 1, 2015.