Black Rock Coffee Bar IPO stands out amid slew of tech deals
Black Rock Coffee Bar is brewing an IPO on Nasdaq as the drive-thru coffee bar chain files publicly for what may be a rare consumer IPO in the post-Labor Day listing rush.
JP Morgan, Jefferies, Morgan Stanley and Baird are lead bookrunners on Black Rock’s plan to sell new shares.
Black Rock operates 158 drive-thru coffee bars across seven states including California, Washington and Texas. Its net loss narrowed by 14% for the first six months to US$1.9m, as total revenue rose 24% to US$95.2m.
The company said energy drinks have provided a boost to its top line and accounted for 24% of revenue for the first half of the year. Black Rock said it’s in the early stages of growing and expects to open about 30 stores this year.
All of the IPO proceeds will be used to purchase shares of the Black Rock opco, which are currently owned by co-founders and other equity owners.
Through the IPO, current investors will have an opportunity to cash out on their investments or enjoy certain tax benefits by redeeming or exchanging into the company’s common stock.
Founded in 2008, the company has US$108m in outstanding borrowings, incurring a variable interest rate of about 10.6% and set to mature in September next year.