Toast unveiled on Tuesday the price of its shares for initial public offering. The restaurant technology vendor priced its share at $40. The offering was above the expected range and values the company at about $20 billion.
Analysts expected the company to sell shares at $34 to $36 apiece, after raising the range from $30 to $33. The company will trade on the New York Stock Exchange under the symbol “TOST.”Technology Vendor Toast initial public offering is a big move after the company’s revenue sank during the pandemic. Many restaurants were shut due to the pandemic and the company reduced the workforce in mid-2020. The company took many measures to stay in business.
Toast initially gave a one-month credit of software fees to its customers and provided free access to its technology that enabled takeout, online ordering and gift card purchases. Other accommodation focused companies like Airbnb and TripActions were back to business rapidly as pandemic locked people in their houses and once the curfew was raised people started travelling. Restaurants stayed open and shifted their business to takeout, delivery and mobile ordering which was advantageous for Toast.
Before the pandemic, the company strived to sell their product. The technology offers one place solution for all payments, inventories and multi-location eateries. In February 2020 investors estimated the company as $5 billion. By the third quarter of 2020, the company grew rapidly. The current and the former employees sold 25% of their vested shares at a price that valued Toast at $8 billion.