According to the Financial Times (FT), the IPO of JDE Peet’s will total between 1.5 and 2 billion euros.
New shares will be issued for 700 million euros, according to the FT, which has seen the documents. This will pay off debts.
Furthermore, JAB Holdings, which is again the owner of JDE Peet’s, will announce that it will sell some of the shares it has in the company, the newspaper wrote on an insider basis.
Already viewed in December
JDE Peet’s is the big competitor of the Swiss Nestlé (known from Nespresso) and it is the largest player that focuses only on coffee. Nestlé also sells chocolate and baby food, among other things.
JDE Peet’s said in December that an IPO was being investigated. In mid-March, those plans went into the refrigerator, wrote the Financieele Dagblad. An insider then told RTL Z that the IPO would still be planned for 2020.
Largest IPO this year
JDE Peet’s and JAB Holdings did not immediately respond to questions from RTL Z. Spokesperson Robbert ter Hart of Euronext Amsterdam says that no intention to float has yet been issued by JAB Holdings. Such a message precedes any IPO.
Ter Hart neither confirms nor denies whether there has been contact between JAB and Euronext about an IPO since the previous plans of JAB Holdings for an IPO.
If the IPO goes ahead, it will be the largest in Europe so far this year. The interest in companies to go public is limited by the corona crisis. Last week, Pexip, the Norwegian competitor of Zoom, took the plunge.
‘Coffee market not hit’
According to the FT, JAB Holdings’ desire for an IPO reflects that it thinks the effects of the coronavirus will last months, if not years, but that it will barely hit the coffee market.
And the first signs are indeed not unfavorable: in the first quarter, the turnover of the division of Nestlé, which includes the coffee activities, rose by 3.9 percent.
DE previously listed
Douwe Egberts was also listed on the stock exchange in 2012, also in Amsterdam. That was then under the name DE MasterBlenders. However, within a year it was taken over by the German investor J.A. Benckiser. Later JAB and the American Mondelez merged their coffee activities.
Later still, that company merged again with the American company Peet’s, which is active in the US with coffee and also has more than 250 stores.
In December, the Financial Times wrote that JDE Peet’s IPO involved 3 billion euros, but that is apparently one third to half less.