DAVIDsTEA (DTEA) IPO Opens Up 32%

Today's IPO for DAVIDsTEA, Inc. (Nasdaq: DTEA) opened for trading at $25.01 after pricing 5,100,000 shares of common stock at a price of $19.00 per share, above the expected $17-$18 range.

In addition, the underwriters have been granted a 30-day option to purchase up to an additional 765,000 shares at the initial public offering price, less underwriting discounts and commissions.

The offering is being made through an underwriting group led by Goldman, Sachs & Co., J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated. Acting as co-managers are BMO Capital Markets Corp. and William Blair & Company, L.L.C.

Founded in 2008, with the demand for tea on the rise, DAVIDsTEA has grown from one store in downtown Toronto to more than 150 retail outlets across North America. Headquartered in Montreal, Quebec, the company offers over 150 varieties of tea, including exclusive blends, limited edition seasonal collections, traditional straight teas and exotic infusions from around the globe – plus a huge selection of organic and Fair Trade certified teas. They carry a wide selection of exclusive, in-house designed hard goods, as well as a robust beverage offering, with any of their teas available hot or iced to go. The company is dedicated to community involvement, in addition to a commitment to sustainable practices.

Highlights:

• The growth of our store base from 70 stores in fiscal 2011 to 154 stores in fiscal 2014, representing a 30% compound annual growth rate. As of January 31, 2015, we had a total of 154 stores or approximately 24% more than at the end of fiscal 2013. As of May 2, 2015, we had 161 stores in North America.
• Twenty-two consecutive quarters of positive comparable sales growth through the end of fiscal 2014. On an annual basis since fiscal 2011, we have reported double-digit comparable sales growth ranging from 33.4% in fiscal 2011 to 11.1% in fiscal 2014.
• An increase in sales from $41.9 million in fiscal 2011 to $141.9 million in fiscal 2014, representing a 50% compound annual growth rate. Sales in fiscal 2014 were approximately 31% higher than in fiscal 2013.
• Growth of our Adjusted EBITDA from $7.7 million in fiscal 2012 to $21.9 million in fiscal 2014, representing a 68% compound annual growth rate. Adjusted EBITDA in fiscal 2014 was approximately 54% higher than in fiscal 2013. Our net income was $(4.4) million, $(6.2) million and $6.5 million in fiscal 2012, 2013 and 2014.

You May Also Be Interested In

• SK Hynix indicating open at $176, IPO priced at $149
• Trump: Cease Fire Is Over
• Netflix eyes Letterboxd acquisition, Variety reports, citing Puck