Toast Aims for $18B Valuation in IPO


Boston-based restaurant tech point-of-sale (POS) firm Toast Inc. will push for a valuation of up to $18 billion in its U.S. initial public offering (IPO), according to a Reuters report on Monday (Sept. 20).

Toast’s software platform helps restaurants manage online orders, create an on-demand delivery network and integrate payments.

The company plans to sell almost 21.7 million shares in its IPO at between $34 and $36, according to a regulatory filing cited in the Reuters report. Toast previously had planned to price its shares between $30 and $33.

If all shares sell for the highest proposed price, Toast would raise almost $783 million through its New York Stock Exchange listing under the ticker symbol TOST.

The company has partnered with almost 48,000 restaurant locations and has processed more than $38 billion in gross payment volume in the past 12 months, according to Toast’s regulatory filing.

Toast was valued at $5 billion after a February fundraising round. When it officially goes public, it will join an ever-more-crowded market that also includes Coinbase, Roblox and Didi Global.

Toast’s investors include TPG, Tiger Global Management and American Express Ventures. The company added delivery networks and contactless payments last year after being forced to cut its workforce in half in the early days of the COVID-19 pandemic.

Related news: POS ResTech Firm Toast Eyes IPO up to $717M

Last week, Bloomberg reported that Toast Inc. was contemplating an IPO of up to $717 million based on a valuation of $16.5 billion, and that the company intended to sell 21.7 million Class A shares for $30 to $33 each.

Last month, PYMNTS reported that Toast was filing an estimated $100 million IPO with an approximate valuation of $20 billion.

Toast saw a year-over-year increase of 17%, including a 125% surge in gross payments volumes to $10.4 billion in the second quarter of the year, compared to the same time in 2020.