Why Dunkin’ Donuts’ IPO Success Is Good News for KKR
We are accustomed to initial public offerings (IPOs) of newer companies originating from venture capital funds. Dunkin’ Donuts (DNKN) represents the other breed of IPO: An established company originating from a private equity fund.
Dunkin’ Donuts’ stock was offered at the top price of its range ($19 per share), began trading on Wednesday (July 27) at almost $25 and closed near $28. It rose almost 50% as the stock market fell 2% in a lousy, down week. Even though KKR & Co. L.P. (KKR) wasn’t one of Dunkin’ Donuts’ private equity owners, here’s why that is good news for KKR.
This article is posted on SeekingAlpha.com