Expectations are high for the initial public offering of Toast (TOST), which provides a financial technology services and solutions platform for restaurant operators. The Toast IPO will price Tuesday and trade Wednesday.
The Boston-based company increased the offering price on Monday with an IPO that could raise $781 million if it prices at the high end.
The Toast IPO is offering 21.7 million shares at a range of $34 to $36. That’s up from a previous range of $30 to $33 and indicates strong investor interest in the offering. That would also give Toast a valuation near $18 billion.
Toast provides a cloud-based technology platform built specifically for the restaurant industry, with a software-as-a-service business model. The software includes integrated payment processing with a “broad ecosystem of third-party partners,” according to the Toast IPO filing.
Toast IPO Could Be ‘Explosive’
“We serve as the restaurant operating system, connecting front of house and back of house operations across dine-in, takeout, and delivery channels,” it said.
According to IPO research and advisory firm IPO Boutique, the Toast IPO is set for a “highly liked explosive debut.”
The platform is used by about 48,000 restaurant locations across 29,000 customers, processing more than $38 billion of gross payment volume in the trailing 12 months.
For the six-month period ended June 30, Toast reported revenue of $703.7 million, more than double that of the same period a year ago. It reported a net loss of $234.6 million, vs. a year-earlier loss of $124.5 million.
The Toast IPO will trade on the New York Stock Exchange on Wednesday under the ticker TOST. The lead underwriters are Goldman Sachs, Morgan Stanley and JPMorgan.
As the traditional summer break ends, initial public offerings are stampeding ahead, already making 2021 one of the biggest years ever in terms of proceeds raised, led by the tech IPO field.
Thus far this year, IPOs in the U.S. have raised $100.5 billion. Total proceeds could shatter the record set in 2000 by about 30%, according to Renaissance Capital.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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