Toast Inc. is planning an initial public offering that could value the restaurant software provider at around $ 20 billion, people familiar with the matter said.
Toast turned to Goldman Sachs Group Inc. and JPMorgan Chase & Co. for a potential listing later this year, these people said. You could also consider other options, including a sale or combination with a blank check company, some of the people said. There are no guarantees that Toast will eventually go public or seek another option.
Going public, Toast, a 10-year-old company whose valuation has multiplied by several in the past year, would join a red-hot IPO market lately driven by high-profile debuts from companies like Affirm Holdings Inc. and Bumble Inc Shares in both are trading well above their IPO prices, as are those of their 2020 predecessors, including Airbnb Inc. and DoorDash Inc.
Also driving the record IPO market is a wave of so-called special-purpose acquisition companies, which go public without a business and then seek one to merge.
Founded in 2011 by Aman Narang, Jon Grimm, and Steve Fredette, Toast offers cloud-based software and payment processing hardware for restaurants. In addition to leading 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.