Coffee giant JDE Peet’s in record virtual IPO

JDE Peet's, the world's largest coffee and tea group by revenue, is now trading on Euronext Amsterdam following a virtual IPO that raised a record €2.6bn.

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Covid-19 didn’t stop coffee group JDE Peet’s from launching Europe’s biggest initial public offering this year so far at the end of May.

This was a landmark transaction in several ways: the only benchmark IPO in Europe, the Middle East and Africa in 2020 to date, the largest consumer IPO in EMEA since 2000 and the fifth-largest listing in EMEA in the past decade.

It was also the first ever €1 billion+ IPO to be executed virtually, with the fastest-ever bookbuild for an IPO of this size. The virtual roadshow took just three days compared to the usual two weeks or so for the more traditional version, protecting against both coronavirus and market volatility. It confirmed strong investor interest at a time when the European IPO market is understandably lacklustre.

BNP Paribas was one of three Joint Global Coordinators of the transaction.

JDE Peet’s, formed by the merger of Jacobs Douwe Egberts (JDE) and Peet’s Coffee in January 2020, had a combined €6.9 billion sales in 2019 in more than 100 developed and emerging countries. It owns more than 50 coffee and tea brands including Peet’s Coffee, Jacobs Coffee, Douwe Egberts, L’Or, Tassimo and Kenco.

“This is a company that doesn’t have a direct comparison in Europe – it’s unique, very large, and very resilient. There is not much else out there that investors are looking at so people had time to engage with this,” Andreas Bernstorff, head of equity capital markets, told the Financial Times.

This was the 20th Equity Capital Markets transaction led by BNP Paribas since the onset of the Covid-19 crisis.