Caribou Selling 5M Shares

BROOKLYN CENTER, MN-Caribou Coffee is selling 5.4 million shares of common stock expected to price between $13 and $15 each on the Nasdaq as part of its IPO. The chain, which operates about 340 units, first filed to go public in July and executives plan to raise $67.9 million through this offering.

Part of the proceeds, about $38 million, will go toward store growth. Caribou executives are planning 105 to 115 new coffeehouses next year, on top of the 48 to 58 they plan to open this year. Officials also plan to make payments on the company’s revolving credit facility.

One of the risk factors Caribou lists for investors is the possibility of income losses. For the year ended Jan. 2, Caribou lost $2.1 million, and the company has lost $3.1 million for the 26 weeks ended July 3. The retailer’s deficit is at $23.1 million.