As per sources from Bloomberg, a leader in restaurant technology, Toast Inc. has gone public with its initial public offering (IPO), targeting to raise $870 million. The shares have been priced at $40 each share, which has exceeded the market range. Investors who did not wish to be named have pointed this out. The company had earlier marketed its public offering of 21.70 million shares in the price band of $34-$36 per share. This band was also above the initial plan of $30-$33 price band.
As Per Bloomberg sources, the request to Toast Inc representative did not elicit any response.
Toast amended filing with the US Securities and Exchange Commission is expected to have a market valuation of $20 billion on its outstanding shares listed with the stock exchange. After adding employee stock options and other restricted stocks, the total market value would be more than $22 billion.
Toast Inc. was incorporated in 2011 as a restaurant company that deployed cloud-based software. The software allowed customers to order food online; diners could use them for ordering in-person or through calls. The software captures the guest data’s which are then used in marketing and building loyalty programs.
The software platform used by 48000+ restaurants worldwide has helped them improve their operations, increase their sales, and provide a better customer experience.
The software not only serves the guests dining in and over digital order and delivery but also manages the payroll and HR of the Restaurant. Total billings by all the restaurant users of this software crossed $38000 billion in the past 12 months.
Toast Inc was hit hard by the pandemic in 2020, leading to layoffs and losses. The company bounced back and doubled its revenue to $704 from$344 6months leading up to June 2021. However, the net losses doubled to $235 million.
Post the IPO, the B class shareholders who carry 10 votes each will 99.50 % of the voting power of total shareholders. This is compared to the class A shareholders who would have acquired one share each from the IPO.
The present investors, including their affiliates in Toasting, are Bessemer Venture Partners, Tiger Global PIP, and Technology Investment Dining Group.
The lead bankers to the IPO are Goldman Sachs Group Inc., JPMorgan Chase & Co, and Morgan Stanley.
The company is being listed on NYSE, and the trading is expected to start on Wednesday under the stock symbol TOST.