Toast software helps restaurants process payments and handle orders.
Courtesy of Toast
Toast , Freshworks and a.k.a. Brands Holding are making their public market debuts Wednesday as action in the IPO market picks up after the summer lull.
More than a dozen companies are scheduled to open for trading this week. Both Toast and Freshworks raised more money than expected, while a.k.a. Brands priced its initial public offering at the bottom of the range it had told investors to expect.
Late Tuesday, Toast raised nearly $870 million, selling 21,739,131 shares at $40 each. The Boston fintech had initially filed to sell 21,739,131 shares at $30 to $33 each, which it increased to $34 to $36 each on Monday. It will trade under the New York Stock Exchange ticker TOST.
Goldman Sachs & Co, Morgan Stanley , and J.P. Morgan are lead bookrunners on the deal.
Toast provides point-of-sale software that helps restaurants and bars process payments and streamline orders. About 48,000 restaurant locations used Toast’s software to process more than $38 billion of gross payment volume during the past 12 months, the prospectus for the deal said.
The fintech has raised $902 million in funding, according to Crunchbase. Tiger Global Management, a frequent technology investor, will have voting power of nearly 13%, while venture capital firm Bessemer Venture Partners will own 12.42%, the prospectus said.
Freshworks, based in San Mateo, Calif., raised $1 billion after selling 28.5 million shares at $36 each. Freshworks had initially planned to offer 28.5 million shares at $28 to $32 each, but increased that to $32 to $34 a share on Monday. It will trade on Nasdaq under the ticker FRSH.
Morgan Stanley, J.P. Morgan and BofA Securities are lead underwriters on the deal.
Freshworks offers software that helps businesses automate routine and repetitive tasks, such as sending welcome emails and setting follow-up reminders for executives. The company has raised $484 million in funding,according to Crunchbase. Tiger Global will have voting power of nearly 26%, while the venture firm Accel will have more than 25%, according to the prospectus for the deal.
A.k.a. Brands, based in San Francisco, collected $110 million after selling 10 million shares at $11 each. The company had initially filed to offer 13.9 million shares at $17 to $19, which it slashed Tuesday to 10 million shares at $11 to $13. It will trade under the NYSE ticker AKA.
BofA Securities, Credit Suisse and Jefferies are lead bookrunners on the deal.
Founded in 2018, a.k.a. acquires fashion brands that are geared to millennials and Gen Z consumers who get their fashion inspiration from social media. These consumers also mainly shop online and by using mobile devices.
Write to Luisa Beltran at [email protected]
