Toast Publicly Traded: Raises $870 Million in IPO

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Toast ($NYSE:TOST)’s software helps restaurant businesses automate operations, improve guest experiences and grow revenue. Toast’s IPO is one of the largest in the software-as-a-service industry this year. The company plans to use the proceeds from the IPO to invest in product development and sales and marketing initiatives, as well as for general corporate purposes.

Stock Price

When TOAST went public on Thursday, it was met with mostly negative media exposure. However, the company raised $870 million in its IPO, and its stock price rose by 0.4% from the previous closing price. This shows that TOAST is a financially stable company, despite the negative media attention.

VI Analysis

A company’s fundamentals reflect its long term potential. The VI app makes it easy to analyze a company’s financials and understand its health. The VI Star Chart shows that TOAST has a high health score of 7/10, indicating that it is capable of paying off debt and funding future operations.

However, TOAST is classified as a “cheetah” company, meaning that it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. Investors interested in TOAST should be aware of its weaknesses in profitability and dividend growth. However, the company’s strong asset growth and low debt levels make it a potentially attractive investment.

Summary

All of the shares of Class A common stock in the offering are being sold by Toast. J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are acting as joint book-running managers for the offering. BofA Securities, Inc., Barclays Capital Inc., Credit Suisse Securities LLC and RBC Capital Markets, LLC are acting as joint lead managers for the offering. William Blair & Company, L.L.C., Canaccord Genuity Inc., JMP Securities LLC and Needham & Company, LLC are acting as co-managers for the offering.