Restaurant Software Firm Toast Aiming For Valuation Of Over $16bn In IPO
Toast Inc is aiming for a valuation of over $16 billion in its US initial public offering (IPO), according to a regulatory filing by the start-up that sells software to help restaurants with both online and in-store orders.
Boston-based Toast is planning to sell 21.7 million shares in the offering, priced between $30.00 and $33.00 per share. At the top end of that range, the IPO will raise $717.4 million.
The 10 year old company provides a software platform that helps restaurants manage online ordering, operate an on-demand delivery network and integrate payment.
Boom In Demand For Food Delivery Services
Its listing plan comes during a COVID-19 pandemic-driven boom in demand for food delivery services that has boosted businesses of DoorDash Inc and rivals Uber Eats and Grubhub.
Other Planned Start-Up IPOs
Several other high profile start-ups, including Freshworks, Thoughtworks and ForgeRock, are also slated to go public this fall in one of the hottest years for IPOs.
Toast has shifted focus to products such as delivery networks and contactless payment after the hit from the pandemic forced it to slash its workforce by half in the early days of the crisis.
Value In February And Investors
Valued at approximately $5 billion in a private round in February, the company's investors include TPG, Tiger Global Management, American Express Ventures, Bessemer Venture Partners, G Squared, TCV and Greenoaks.
It will list its stock on the New York Stock Exchange under the symbol "TOST".