Hot Dog Chain Portillo’s Fares Better Than Vita Coco

(Bloomberg) -- Celebrity-backed coconut beverage maker Vita Coco Co. fell in its trading debut while hot dog and hamburger restaurant chain Portillo’s Inc. fared better in its opening trades as well as its initial public offering.

Vita Coco and its existing shareholders sold 11.5 million shares Wednesday for $15 each after marketing them for $18 to $21, raising $173 million. The shares opened at Thursday at 37 cents above the IPO price but ended the day down 9.9% to $13.52, giving the company a market value of $750 million.

“The IPO market is a bit tough,” Mike Kirban, Vita Coco’s co-founder and chief executive officer, said in an interview earlier Thursday. “Our goal coming into this is getting the best investors possible and we were able to do that.”

Kirban said Vita Coco’s stock is an alternative to the traditional investment options in the beverage category -- Coca-Cola and Pepsi -- and it’s tapping into the future generation of consumer and investors who are looking for healthier, plant-based products.

Street Food

Portillo’s, the other food company that debuted Thursday, started in a trailer in 1963 and has grown to 67 restaurants in nine states, featuring what it calls iconic Chicago street food.

Its shares rose as much as 55% from its IPO price and closed at $29.10. Portillo’s, based in Oak Brook, Illinois, raised $405 million in its share sale, pricing the stock at the top of a marketed range of $17 to $20.

In contrast to Vita Coco, Portillo’s CEO Michael Osanloo is still deciding whether to add trendy plant-based entrees to the chain’s menu, and plans to keep it simple if he does.

“I think there are some black bean burgers that are interesting,” Osanloo said in an interview. “Right now our guests are not clamoring for that. We’re going to be slow to move on this.”

P10, Enfusion

Dallas-based Investment firm P10 Inc. fell short of its $320 million target in its IPO. It priced its shares Wednesday at $12 after marketing them for $14 to $16. The shares rose 0.7% Thursday, giving the company a market value of $1.4 billion.

Financial software firm Enfusion Inc. rose almost 17% to $19.81 in its debut Thursday, giving the company a market value of $2.2 billion. The Chicago-based company raised $319 million in its IPO, pricing its shares at the top of its marketed range of $15 to $17.

Enfusion CEO Thomas Kim said the company decided to go public in part to attract institutional investors and will remain focused on its growth. The company’s biggest investors include affiliates of FTV Capital and Iconiq Capital.

The company’s shares are trading on the New York Stock Exchange under the symbol ENFN. The offering was led by Morgan Stanley and Goldman Sachs Group Inc.

Vita Coco’s IPO was led by Goldman Sachs, Bank of America Corp., Credit Suisse Group AG and Evercore Inc. Its shares are trading on the Nasdaq Global Select Market under the symbol COCO.

An affiliate of Keurig Dr Pepper Inc. agreed to purchase $20 million of stock from investment firm Verlinvest, an existing backer and selling shareholder in the offering, the prospectus shows. 

Keurig is a distributor of Vita Coco and RUNA Clear Energy, an energy drink owned by Vita.

Madonna, McConaughey

Early investors in Vita Coco included singer Madonna  and actors Matthew McConaughey and Demi Moore.

Portillo’s offering was led by Jefferies Financial Group Inc., Morgan Stanley, Bank of America and Piper Sandler. Its shares are trading on Nasdaq under the symbol PTLO.

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