Driven Brands Holdings Inc. raised $ 700 million on its IPO yesterday and sold nearly 32 million shares of a planned 38 million for $ 22 each. That’s 19 percent more than the starting range of $ 17-20. The IPO also set some records, according to BofA Securities, Bookrunner.
According to an email from BofA, this is the only retail IPO above $ 500 million, which is $ 2 above the range in Wall Street history, and the highest offering of any consumer and retail IPO above 500 Million dollars. Investors liked the “hot topics” that Driven Brands satisfied, including “franchise”, “very little market share with massive TAM” or an overall addressable market and “Amazon proof services,” the press release said.
DRVN is now trading on the Nasdaq, with shares trading just over $ 28 at noon in the east on the first day, Jan. 15. For fiscal year 2020, the company forecasts revenue of $ 897 million and acquisition-adjusted EBITDA of $ 267 million, or gross profit.
Private equity firm Roark Capital retains a 70 percent stake in the company it acquired in 2015. The proceeds will be used to pay off $ 722 million in debt from the August 2020 acquisition of ICWG, International Car Wash Group.
During a six-day virtual roadshow, management reached over 282 investors through one-on-one video calls and group calls, according to the BofA Note, extolling an asset-light business model that “generates consistent recurring revenue and strong operating margins” requires limited maintenance investments. “
Driven Brands is headquartered in Charlotte, North Carolina and owns the automotive service brands Take 5 Oil Change. Meineke Car Care Center; Maaco; Carstar; ABRA; and 1-800 Radiator & A / C among others.