Toast Inc. plans an initial public offering that could value the restaurant software provider at about $ 20 billion, people familiar with the matter said.
Toast took advantage of Goldman Sachs Group Inc. and JPMorgan Chase & Co. to subscribe to a possible listing later this year, these people said. Some of the people might also consider other options, such as a sale or a combination with a blank check company. There are no guarantees that Toast will end up making it public or pursuing another of the options.
Upon becoming public, Toast, a ten-year-old company whose valuation has multiplied several times over the past year, would join an intensive Research Stock Market market fueled recently by the debuts of great profile of companies like Affirm Holdings Inc. and Bumble Inc. The shares of both are trading well above their IPO prices, as are those above 2020, including Airbnb Inc. and DoorDash Inc.
It also feeds the record IPO market a wave of so-called special-purpose acquisition companies, which are made public without business and then looking for one to merge it.
Founded in 2011 by Aman Narang, Jon Grimm and Steve Fredette, Toast provides payment processing hardware and cloud-based software for restaurants. Aside from major point-of-sale offerings, its products include payroll processing and email marketing, and it also lends to restaurants through Toast Capital. Competitors include Square Inc. and PayPal Holdings Inc.