* Sees IPO of 22.3 mln shares at $16-$18/shr
* Key stockholders Bain Capital, Caryle, THL not selling
shares in IPO
* IPO to get better-than-anticipated reaction from investors
(Rewrites throughout, adds analysts comments, details,
By Brenton Cordeiro and Tanya Agrawal
BANGALORE, July 11 Dunkin' Brands Group Inc,
known for its Dunkin' Donuts and Baskin Robbins ice cream, has
set a price range for its public offering, valuing the company
at as much as $2.3 billion, at a time when IPOs have had mixed
reception from investors.
The company, taken private in a $2.4 billion deal in 2005 by
a consortium including Bain Capital, Carlyle Group and
Thomas H. Lee Partners, said it was offering about 22.3 million
shares at a price band of $16-$18 apiece.
"Dunkin' Brands has been transformed quite dramatically into
something new relative to the takeover. There are some very
smart people directing the company," said David Menlow,
president of IPOfinancial.com. "I think it (the IPO) will get a
better-than-anticipated reaction from investors."
While most tech offerings, including those from LinkedIn
Corp and Yandex , had strong trading debuts,
companies like Vanguard Health Systems priced its IPO
below its filed range, and Stewart & Stevenson LLC postponed its
The initial public offering of Toys R US , the
world's largest toy retailer is now expected in 2012. It had
filed for an IPO in May last year.
"The Dunkin' brand is not time sensitive. It has developed a
huge brand awareness with Dunkin' Donuts and Baskin Robbins,"
said Scott Sweet, senior managing partner at IPO Boutique.
"Consumers will travel for miles to get to Dunkin' Donuts."
Dunkin' Brands, with over 16,000 outlets in 57 countries,
earned $26.9 million on revenue of $577.1 million in the year
ended Dec. 25.
Previously part of Allied Domecq, it competes with Dairy
Queen, Cold Stone Creamery and Starbucks Corp . When
Pernod Ricard the world's No.2 spirits maker, acquired
Allied Domecq in 2005, it ditched the Dunkin' Brands businesses.
"Dunkin' is probably recession resistant. They have a lot of
growth in their business," said BGB Securities analyst Sam Yake.
Bain Capital, Carlyle and THL would collectively will own
about three-fourths of the company after the offering. None of
them are selling their shares in the IPO.
In a regulatory filing on Monday, Dunkin' Brands said it
expects to receive net proceeds of about $348.4 million from the
Dunkin' Brands, which expects to list on Nasdaq under the
symbol "DNKN," plans to use the proceeds to repay debt and for
In May, the company filed for an IPO of up to $400 million.
Post IPO, the company will have about 126.4 million shares
outstanding excluding the over-allotment option.
(Reporting by Brenton Cordeiro and Tanya Agrawal; Editing by
Don Sebastian and Gopakumar Warrier)