What's going on?

JDE Peet�s brightened up investors� mornings with a charming novelty for these pandemic-fatigued times: a fast-tracked $2.9 billion initial public offering (IPO).

What does this mean?

Shares in JDE � the world�s second-biggest maker of packaged coffee, and owner of brands like Douwe Egberts, Peet�s Coffee, and Jacobs � are set to wake up bright and early on Friday to start trading on the Amsterdam Stock Exchange. The company�s raising $2.9 billion in an IPO that values the company at more than $17 billion � a number that’s caught the attention of big-name buyers like George Soros (tweet this).

Coronavirus-related travel restrictions mean JDE had to hold an all-virtual roadshow, just like videoconferencing company Pexip did a few weeks ago. But that�s helped speed this whole process up: JDE is wrapping up its IPO in ten days rather than the usual four weeks, making it one of the fastest IPOs of its size. Probably a wise move, given that no one knows when the next bout of coronavirus-induced market volatility is going to hit�

Why should I care?

For markets: A good cup of Joe.
JDE plans to use the proceeds from the IPO to outbrew its main coffee rivals: Starbucks, Nestl�, and Green Mountain Coffee. One way it plans to do that is by buying up smaller rivals, which will be a lot more straightforward thanks to the tough terms it�s negotiated with its suppliers. JDE pays them up to 300 days after it buys their coffee beans, freeing up plenty of cash for those tasty, tasty takeovers.


The bigger picture: No �bucks given.
With so many coffee shops shut due to coronavirus restrictions, coffee-drinkers are increasingly getting their caffeine fix at home. That gives JDE the edge over Starbucks, which � despite recruiting Nestl� to sell its coffee in grocery stores � still makes most of its revenue from physical coffee shops. JDE, on the other hand, makes almost 80% of its revenue from grocery sales.