Written by ANDREW SELSKY Associated Press
(AP) — After humble beginnings as a pushcart operation decades ago in an Oregon town and growing into a company with hundreds of drive-through coffee shops in about a dozen U.S. states, Dutch Bros Coffee on Wednesday launched an initial public offering on the New York Stock Exchange.
The offering drew an enthusiastic response from investors, who sent shares of the company up by more than 50% within hours.
Dutch Bros Coffee Executive Chairman Travis Boersma was expected to celebrate by ringing the closing bell at New York Stock Exchange. The company had an initial public offering price of $23 and the share price jumped to $36 in midday trading.
The Pacific Northwest is known for its love of coffee. Starbucks started in 1971 in Seattle’s historic Pike Place Market. Unlike that chain, which is now ubiquitous in the United States and beyond, Dutch Bros is 100% drive-through.
The shops with windmill emblems have sprouted up across the West and are now located as far east as Texas and Oklahoma.
Company President and Chief Executive Officer Joth Ricci told IPO Edge, a news outlet focusing on new company share offerings, that the company decision to go public doesn’t mean the its growth will be overly aggressive.
“We are not accelerating growth because of the IPO but staying disciplined,” Ricci told IPO Edge.
Boersma and his brother Dane started off in business in 1992 selling espresso-based beverages from their pushcart near the railroad tracks in the southern Oregon town of Grants Pass, which now has a population of about 37,000.
Dane Boersma died of amyotrophic lateral sclerosis, called ALS and also known as Lou Gehrig’s disease, in 2009 at age 55.
Dutch Bros Coffee in May held its 15th annual Drink One for Dane day, in which the company donated a portion of proceeds from all of its shops to the Muscular Dystrophy Association, the leading non-profit organization in ALS research, care and advocacy.