Is The Toast (TOST) IPO a Good Buy?

Once a mysterious crisis in a far-off land, when the COVID-19 pandemic began breaching our borders, common sense shuddered at the stark inevitability. Social distancing became a top priority when scientists discovered…

that the SARS-CoV-2 virus could be spread by breathing contaminated air particles. To get ahead of the infection curve, government bodies across the globe imposed draconian mitigation measures.

While these early actions may have saved countless lives, the understandable decision caused unprecedented devastation to multiple physical retailers. Among the worst-hit sufferers was the high-traffic-dependent restaurant sector, forcing many small business owners to take drastic, heart-wrenching measures.

As society rang in the new year, many companies in the food-and-beverage industry began picking up the pieces, which were numerous. According to a sector-specific study, more than 10% of U.S.-based restaurants shut their doors permanently. Yet in the middle of this crisis, hope came in the form of an initial public offering (IPO).

Toast — a technology-driven, cloud-based software platform geared toward driving efficiencies in the restaurant industry — will test the resilience of the American consumer market. If you’re confident, you can reserve a seat in this potentially transformative narrative.

When is the Toast IPO Date?

One of the most anticipated listings on the IPO calendar, Toast is set to make its debut on September 22, 2021. Per its prospectus with the U.S. Securities and Exchange Commission (SEC), the software firm’s Class A common shares will trade on the New York Stock Exchange under the ticker symbol TOST.

Initially, Toast planned to raise $685 million in its public market unveiling through the offering of 21.7 million shares at a price range between $30 and $33 per unit. At the midpoint of this spectrum, the restaurant-centric tech company would enjoy a fully diluted market value of $17.9 billion. Later, based on management’s amended Form S-1, Toast declared its intention to raise $825 million. While the price-per-share would stay the same, the shares offered increased to 25 million.

Financial heavyweights Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), JPMorgan Chase (NYSE: JPM), Piper Sandler (NYSE: PIPR), William Blair and KeyBanc Capital Markets — which is under KeyCorp (NYSE: KEY) — are joint bookrunners for this offering.

In an IPO market flooded by…

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