Toast Raises $870 Million on Its First Day of NYSE IPO

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Toast starts trading on the New York Stock Exchange, issuing roughly 21.7 million shares of Class A common stocks at $40 each. At that share price, the initial public offering may bring in more than $869 million. Also, the company has given underwriters a 30-day option to buy an extra 3.2 million shares at the IPO price, raising an extra $130 million. If the extra shares were sold, a net amount of $1 billion would be raised.      

With a $20 billion value, Toast’s IPO ranks among the biggest of the year in the restaurant technology sector.               

Just two days before Toast’s debut, the restaurant technology business revised its intended share price range from $30 to $33 to $34 to $36. According to the corporation, it would first offer around 22 million shares, raising a maximum of $782 million. Toast initially planned a $100 million offering when it first filed to go public.

According to Toast president and Co-founder Steve Fredette, “Investors were extremely responsive to the company’s offerings throughout the roadshow. Technology has historically underserved the restaurant industry. He believes that the investor community has just begun to realise that.”

According to the company’s S-1 filing, during the pandemic, it introduced Toast Now. Toast Now is a digital platform that enables restaurants to swiftly implement online ordering, gift card, and email marketing capabilities. In April, it also provided a variety of contactless order and payment options, including QR codes.

Before the pandemic, Toast was working on order and pay and digital ordering. However, Fredette claimed that the COVID-19 crisis helped advance a lot of technologies. According to him, the epidemic has also spurred improvements to Toast’s company that have made it more adaptable and scalable. Recently, there has been a significant change in favour of self-install and remote installation, which Fredette said was both a simpler business model for Toast and one that was more effective for customers.                                                    

This change gave the business new life. By June 30, 2021, it had expanded to serve 48,000 restaurant locations, up from over 33,000 in the previous year. Its momentum is certain to continue, especially given that Toast predicted in its S-1 filing that restaurant technology spending will rise from $25 billion in 2019 to $55 billion by 2024.

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