Another day—another IPO (Initial Public Offering) in the works. This time it’s Toast, software developer to the restaurant industry for POS and related solutions. Just a year ago at the start of the pandemic when mass restaurant closings were happening, Toast looked like, well….toast. Now the tech developer is on the rebound with its wide array of payment and business services for eateries. Seems like good timing as the IPO market is red hot. Just ask recent firms cashing in such as Affirm, DoorDash, and Airbnb. We’ll soon find out how appetizing investors will find a potential Toast IPO.
The following excerpt from a Wall St. Journal article reports more on the topic:
Toast Inc. is planning an initial public offering that could value the restaurant-software provider at around $20 billion, people familiar with the matter said.
Toast tapped Goldman Sachs Group Inc. and JPMorgan Chase & Co. to underwrite a possible listing later this year, these people said. It could also consider other options including a sale or combination with a blank-check company, some of the people said. There are no guarantees Toast will ultimately go public or pursue another of the options.
Founded in 2011 by Aman Narang, Jon Grimm and Steve Fredette, Toast provides payment-processing hardware and cloud-based software for restaurants. Aside from core point-of-sale offerings, its products include payroll processing and email marketing, and it also lends to restaurants through Toast Capital. Competitors include Square Inc. and PayPal Holdings Inc.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group