Restaurant-software provider Toast seeks $18 billion valuation with raised IPO price

By Reuters

<div> <p> -Toast Inc is aiming for a valuation of up to $18 billion after raising the price range for its initial public offering in the U.S., as the restaurant-software maker looks to cash in on a record boom in capital markets this year.</p> <p>Toast, founded in 2011, offers a software platform that allows restaurants to keep up with the fast-changing needs of their business, including managing online orders, operating an on-demand delivery network and integrating payments. </p> <p>The company said it was now looking to sell nearly 21.7 million shares priced between $34 and $36 each, according to a regulatory filing on Monday. It had earlier aimed to price the shares between $30 and $33 each.</p> <p>At the top end of the new range, Boston-based Toast would raise up to $782.6 million in its <span class="caps">IPO</span>.</p> <p>As of June 30, the company has partnered with nearly 48,000 restaurant locations and has processed more than $38 billion in gross payment volume over the past 12 months, the filing showed.</p> <p>Toast, last valued at $5 billion after a funding round in February, is looking to list in a market that has seen several high-flying startups like Coinbase Global Inc, Roblox Corp and China’s Didi Global Inc go public this year.</p> <p>Unprecedented government stimulus and near-zero interest rates brought on to combat the economic fallout of the <span class="caps">COVID</span>-19 pandemic are fueling the bull run in U.S. capital markets. </p> <p>Toast, which counts <span class="caps">TPG</span>, Tiger Global Management and American Express Ventures among its investors, was forced to cut its workforce by half in the early days of the pandemic. </p> <p>It has shifted focus to products such as delivery networks and contactless payments on strong demand for such services last year.</p> <p>Toast will list its stock on the New York Stock Exchange under the symbol “<span class="caps">TOST</span>”.</p> </div>