Coffee company JDE Peet's will announce its intention to float on the Euronext stock exchange in Amsterdam in a deal that could raise up to €2 billion ($2.2 billion), two sources close to the matter said.
In what would be a significant boost for the European market for initial public offerings (IPOs), owner JAB Holdings plans to announce the planned listing this week and look to complete the deal by late June.
Luxembourg-based JAB, controlled by Germany's wealthy Reimann family, merged Jacobs Douwe Egberts Coffee with Peet's - a well-known US coffee brand - in December and said it was considering an IPO in 2020.
It had not been clear whether the company would press ahead with an offering, given that the IPO market has been all but shut since the spread of the novel coronavirus roiled markets and hit risk sentiment.
However, unprecedented central bank stimulus has bolstered global markets and a handful of IPOs in the United States and one small listing in Norway for video conferencing company Pexip have revived hopes of further offerings.
The Listing
The listing would be €1.5 billion to €2 billion in newly issued shares, the sources said. Mondelēz, which owns 26% of JDE Peet's, also intends to sell part of its stake.
JDE Peet's, which also owns the Pickwick, Senseo, Tassimo, Douwe Egberts and L'OR brands, said in December that it has operations in 140 countries and annual revenue of about €7 billion.
About 80% of JDE Peet's business is in selling roasted coffee and prepackaged coffee pods and pads. It will compete with Nestlé, JM Smucker and Keurig Dr. Pepper, in which JAB also holds a controlling stake, as well as retail giant Starbucks.
JAB bought Peet's in 2012 for $977.6 million and then bought Douwe Egberts for $9.8 billion in 2013.
