Cafe chain Black Rock Coffee Bar raises $294 million in US IPO

Sept 11 (Reuters) - Black Rock Coffee Bar has raised $294.1 million in its U.S. initial public offering, the cafe chain said on Thursday, setting the stage for a closely-watched consumer listing in the aftermath of the tariff turmoil.

The Scottsdale, Arizona-based company sold about 14.7 million shares at $20, compared with its marketed range of $16 to $18 apiece. The IPO valued it at $956.3 million.

Black Rock Coffee is among the four companies, including Winklevoss twins-backed cryptocurrency exchange Gemini, poised to go public in New York on Friday, in what is set to be the U.S. IPO market's biggest week in years.

The listing will be a litmus test of investor sentiment toward consumer-focused deals, a sector being reshaped amid shifting tariffs, persistent inflation and evolving labor dynamics.

While Black Rock Coffee has delivered strong growth in recent quarters, it faces rising costs due to tariffs and inflation.

The company is the first U.S. restaurant to go public since Cava CAVA.N in 2023, according to Renaissance Capital, a provider of IPO-focused research and ETFs.

Founded in 2008, Black Rock Coffee is a founder-owned operator of drive-thru coffee bars and sells hot and iced coffees and energy drinks.

Retail coffee chains with localized experience and loyal customers have been taking market share from heavy hitters such as Starbucks SBUX.O.

Another drive-thru coffee chain, Dutch Bros BROS.N, went public in 2021. Its shares have more than doubled since its debut.

Black Rock Coffee's top shareholders include affiliates of its co-founders and the Cynosure Group, a Utah-based private investment firm.

J.P. Morgan, Jefferies, Morgan Stanley and Baird were the lead underwriters for the offering. Black Rock Coffee will start trading on the Nasdaq under the symbol "BRCB" on Friday.

Asset manager Wellington Management had indicated interest in purchasing up to $30 million worth of shares in Black Rock Coffee's offering.