Dunkin' IPO Likely to Price Above Expectations: Sources

Jesse Bergman, Reported by Kate Kelly
Tuesday, 26 Jul 2011 | 11:24 AM ET

Dunkin’ Brands, the parent company of Dunkin’ Donuts and Baskin Robbins, could price its initial public offering as high as $20, above the intended range of $16 to $18 a share, according to people familiar with the matter.

Dunkin Donuts
Mario Tama | Getty Images
Dunkin Donuts

Despite the offering’s high demand among investors, the number of shares being sold in the IPO is not expected to increase above earlier guidance of about $25 million, according to these people—in part because Dunkin’s private equity sponsors, which include Bain Capital, The Carlyle Group, and Thomas H. Lee Partners, do not want to further dilute their ownership.

(As part of the IPO, only the company is selling stock.)

At $20, Dunkin’s IPO is poised to raise about $450 million before fees, given that the deal's greenshoe, or overallotment option, is likely to be exercised.

Pricing is expected to be finalized Tuesday night after the market close.

The lead underwriters of the offering include JPMorgan , BarclaysCapital and Morgan Stanley .

Dunkin’ Brands is expected to begin trading Wednesday on the NASDAQ under the ticker “DNKN”.

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