NEW YORK - Dunkin’ Brands Group may seek to raise about $500 million in its initial public offering, said two people with knowledge of the situation, 25 percent more than the coffee shop chain initially filed to sell.
The Canton, Mass.-based company may complete the offering by the end of July, said the people, who declined to be identified because the information is private. Dunkin’ filed with the Securities and Exchange Commission for a $400 million IPO on May 4.
Dunkin’ follows private equity-backed companies such as HCA Holdings Inc. and Kinder Morgan Inc. in returning to the public market this year after leveraged buyouts. Private equity owners have completed the biggest US IPOs in 2011 as a stock market near a three-year high increased investors’ demand for companies acquired through debt-fueled acquisitions before credit markets started to freeze four years ago.
Michelle King, a spokeswoman for Dunkin’, declined to comment.
Bain Capital LLC, Carlyle Group, and Thomas H. Lee Partners LP paid about $2.43 billion five years ago for Dunkin’, which competes with coffee chains such as Starbucks Corp. and Canada’s Tim Hortons Inc.
Proceeds will be used to repay debt, according to filings.