Restaurant software company Toast targets $18bn valuation in IPO
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Restaurant software company Toast targets $18bn valuation in IPO

14 Sep 2021 (Last Updated September 15th, 2021 17:29)

The firm plans to sell shares in a price range between $30 and $33 per share.

Restaurant software company Toast targets $18bn valuation in IPO
Toast offers a technology platform to restaurants. Credit: Toast.

Boston-based restaurant software company Toast is hoping for a valuation of more than $18bn in its initial public offering (IPO) next week.

Toast intends to sell Class A common stock shares in the IPO for a price ranging between $30 and $33 per share.

In a new S-1/A filing on 13 September, it registered 25 million Class A common stock shares, including 3.2 million shares that may be bought by the underwriters pursuant to their option to buy further shares.

With this, the proposed maximum aggregate offering price is $825m.

According to an S-1 filing submitted to the US Securities and Exchange Commission on 27 August, the firm had sought an IPO of up to $100m.

In February last year, Toast raised $400m in a Series F funding round, taking the company’s valuation at that point to $4.9bn.

This round was led by Bessemer Venture Partners, TPG, Greenoaks Capital and Tiger Global Management.

Durable Capital Partners, TCV, G Squared, Light Street Capital, Alta Park Capital, as well as funds and accounts advised by T Rowe Price Associates, also participated in the round.

Established in 2013, Toast offers a technology platform to restaurants that combines restaurant point of sale, front of house, back of house and guest-facing technology with diverse third-party applications.

During the early days of the Covid-19 pandemic, the restaurant technology company is reported to have downsized its workforce by half and focused on delivery networks and contactless payments.

Last December, another online food ordering and delivery platform, DoorDash, raised nearly $3.4bn through its IPO.

The SoftBank-backed company was initially planning to raise up to $2.8bn through the IPO at a price range of $75 to $85 per share.

However, DoorDash raised its price range to between $90 and $95 after receiving a promising response from public investors.