Investors get a charge out of Teavana and Dunkin'
Investors are consuming tea and coffee just as much as they are social media -- at least when it comes to initial public stock offerings.
A day after a delectable 47% gain in the shares of doughnut and coffee purveyor Dunkin’ Brands Group Inc., tea retailer Teavana Holdings Inc. went on a caffeinated ride of its own Thursday, jumping 63.5% in the first trading day after its IPO.
The moves in the two old-line retailers indicate that IPO investors’ recent enthusiasm is branching beyond the Internet and social-media stocks that have been the market’s darlings this year.
Dunkin’ Brands and Teavana -- the type of firms that once were derided for being bricks-and-mortar in the erstwhile dot-com era -- are both highly prized these days for their name brands. Like Dunkin’ Brands, Teavana gained despite another down day in the stock market.
The Dow Jones industrial average sagged 62 points as federal lawmakers appeared to make no progress in their wrangling over the U.S. debt ceiling. It was the blue-chip index’s fifth consecutive losing session.
Teavana’s shares closed at $27.80, up $10.80 from the $17 IPO price. Dunkin’ edged higher also, gaining 54 cents, or 2%, to $28.39.
But not every IPO got a welcome reception, a sign that investors are still being selective about where they place their bets.
Wesco Aircraft Holdings Inc., for example, slid 8 cents to $14.92 in its debut Thursday. The weak showing came after the Valencia aerospace-equipment company sold its shares at $15, less than the expected range of $15.50 to $17.50.
-- Walter Hamilton