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Drive-thru coffee chain Dutch Bros sets terms for $400 million IPO

September 7, 2021

Dutch Bros, which owns and franchises drive-thru coffee shops in the Western US, announced terms for its IPO on Tuesday.

The Grants Pass, OR-based company plans to raise $400 million by offering 21.1 million shares at a price range of $18 to $20. At the midpoint of the proposed range, Dutch Bros would command a fully diluted market value of $3.3 billion.

Dutch Bros offers a variety of beverages, including hot and cold espresso-based beverages, cold brew coffee products, Dutch Bros. Blue Rebel energy drinks, tea, lemonade, and smoothies. The company had 471 shops in 11 states as of June 30, 2021, 264 of which were franchised and 207 of which were company-operated. Dutch Bros plans to focus primarily on company-operated shops for future expansion.

Dutch Bros was founded in 1992 and booked $405 million in sales for the 12 months ended June 30, 2021. It plans to list on the NYSE under the symbol BROS. BofA Securities, J.P. Morgan, Jefferies, Barclays, Piper Sandler, Baird, and William Blair are the joint bookrunners on the deal. It is expected to price during the week of September 13, 2021.