Shares of the Winston-Salem, North Carolina-based doughnut chain opened for trading at $16.30 apiece, valuing the company at $2.62 billion. Shares priced at $17 on Wednesday evening, below the $21 to $24 range that was expected.
The disappointing pricing came as investors were stuffed full of new offerings during what has been one of the busiest weeks for U.S. IPOs.
Investors on Wednesday welcomed the debut of ride-hailing giant Didi Global Inc., the biggest IPO for a Chinese company listing in the U.S. since Alibaba in 2014. Also debuting was cybersecurity firm SentinelOne, the highest valued cybersecurity IPO of all time.
Krispy Kreme’s sale of almost 27 million shares would have raised $640 million at the high end of the range and given the company a market value of $3.86 billion.
Thursday’s initial public offering is the second time Krispy Kreme has gone public.
The company previously went public in April 2000 and was taken private by German conglomerate JAB Holding in 2016.