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Peet's IPO comes in low
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January 24, 2001: 6:56 p.m. ET
Coffee roaster sells 3.3M shares at $8 each, 2 more IPOs on tap this week
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NEW YORK (CNNfn) - Peet's Coffee & Tea Inc., the year's first IPO, raised $26.4 million Wednesday, the bottom of its expected price range.
Peet's Coffee sold 3.3 million shares at $8 each via lead underwriters WR Hambrecht & Co. On Tuesday, Peet's cut its terms to 3.3 million shares at $8 to $12 each, down from $10 to $14. The coffee roaster plans to trade under the Nasdaq symbol "PEET."
Emeryville, Calif.-based Peet's sells coffee in four states and derives much of its revenue from the sale of whole bean coffee. For the nine months ended Oct. 1, Peet's lost $2.7 million on revenue of $59.4 million.
The 34-year-old Peet's plans to compete against established names such as Starbucks Corp. (SBUX: Research, Estimates). Peet's, through its lead underwriter WR Hambrecht, is using a Dutch auction to sell its shares. The process, in which the price of the shares is gradually lowered until it meets a bid and gets sold, is meant to ensure an efficient and fair marketplace for selling shares in an IPO.
Two other IPOs are expected this week. Align Technology Inc., a maker of clear mouthpieces that straighten teeth, plans to price its deal Thursday. Align expects to offer 10 million shares at $14 to $16 via lead underwriter DB Alex. Brown. The Santa Clara, Calif.-based company plans to trade under the Nasdaq symbol "ALGN."
Alameda, Calif.-based Xenogen Corp. also plans to trade later this week, offering 7 million shares at $10 to $12 each via lead underwriters UBS Warburg. The company plans to trade under the Nasdaq symbol "XGEN." 
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