Toast, the US-based restaurant management software provider backed by internet and technology conglomerate Alphabet, closed its initial public offering at $1bn on Friday.
The company had priced a little over 21.7 million shares at $40.00 each last week. Its shares closed at $59.00 on Thursday and $55.81 on Friday, giving it a market capitalisation of just over $28bn.
Lead book-running managers Goldman Sachs, Morgan Stanley and JP Morgan, book-running managers KeyBanc Capital Markets, William Blair and Piper Sandler and co-managers Canaccord Genuity, Needham & Company and R Seelaus bought another 3.26 million shares to close the offering.
Founded in 2011, Toast has built a software platform which integrates point-of-sale and business management tools to enable restaurants to operate their retail, takeout and online delivery from a single place. It made a $248m net loss in 2020 from $823m in revenue.
TPG, G Squared, Durable Capital Partners, Alta Park Capital, Greenoaks Capital and existing investors Bessemer Venture Partners, Tiger Global Management, TCV, Light Street Capital and funds and accounts advised by T Rowe Price provided $400m in series F funding for Toast in February 2020 to take its total funding to $906m.
The 2020 round valued the company at $4.9bn and followed earlier funding from investors also including Alphabet subsidiary GV and Generation Investment Management.
Toast’s largest external shareholders are Tiger Global, which has a 12.1% stake post-IPO, BVP (11.9%), founding investor Steven Papa (11.1%), funds and accounts advised by T Rowe Price (5.7%), co-founder and chief technology officer Jonathan Grimm (5.3%) and TCV (5.2%).
