Tea seller Teavana jumps in IPO debut

AP News
Posted: Jul 28, 2011 3:43 PM
Tea seller Teavana jumps in IPO debut

A day after Dunkin' Donuts parent Dunkin' Brands Group Inc. climbed 47 percent in its IPO debut, it's tea time.

Shares of Teavana Holdings Inc., which sells tea in 161 stores in the U.S. and 19 franchises in Mexico, soared 64 percent by the early afternoon after an initial public offering raised $121.4 million.

Its shares had been priced at $17 a share, above the range investors had expected and a sign that demand was heavy for the tea chain.

Its shares climbed $10.89 to $27.89 in midafternoon trading Thursday. They are traded on the New York Stock Exchange under the "TEA" symbol.

Atlanta's Teavana expects to use its $15 million in proceeds to pay down debt. Its take from the IPO is small because most of the stock was sold by shareholders.