Black Rock Plans IPO, to Raise $267.4 Million

The US drive-through chain Black Rock Coffee Bar is targeting a valuation of up to $861 million in a US initial public offering (IPO) if it successfully sells 14.7 million shares of its Class A common stock, the company said in a regulatory filing with the US Securities and Exchange Commission (SEC) on Tuesday.

The Arizona-based operator of drive-through coffee bars plans to list on the Nasdaq Global Market and seeks to raise $267.4 million by offering 14.7 million shares at $16 to $18 each share, after deducting estimated underwriting discounts and commissions and estimated expenses payable by the company in connection with its IPO.

The offering marks one of the few consumer-sector IPOs in a market largely driven by tech floats, would be the restaurant industry’s first since Gen Korean BBQ in 2023 and will join the US-listed rivals Starbucks and Dutch Bros. It follows the most recent major restaurant IPO of Cava Group’s $365 million raise in 2023.

Founded in Oregon in 2008 with a single stand, Black Rock operates 158 locations, mainly in the West and Southwest, across seven states, serving coffee, iced teas, energy drinks and breakfast food.

For the three months ended June 30, it reported a net loss of $1.1 million on revenue of $50.4 million, compared with a net loss of $522,000 on revenue of $40.6 million a year earlier. Same-store sales rose 10.9% in that period.

Net Proceeds

The underwriters also have an option to purchase up to an additional 2.2 million of the company shares of Class A common stock.

Black Rock estimates that the net proceeds, if the underwriters exercise their right to purchase the maximum of 2,205,882 additional shares of Class A common stock, will be approximately $267.4 million, after deducting estimated underwriting discounts and commissions and estimated expenses payable by the company.

The company estimates that the offering expenses (other than the underwriting discount and commissions) will be approximately $6.5 million. All of such offering expenses will be paid for or otherwise borne by Black Rock OpCo.

Black Rock intends to use all of the net proceeds from this offering to purchase 3.8 million newly issued LLC Units from Black Rock OpCo and 10,753,739 LLC Units from its Sponsor and another 75,132 LLC Units from certain Continuing Equity Owners.

Black Rock OpCo currently intends to use the net proceeds it receives from this IPO, together with proceeds from the Refinancing and the Co-Founder Contribution to repay all $113.2 million of outstanding borrowings under the Credit Facility, to pay estimated offering expenses of $6.5 million and, to the extent there are remaining proceeds, for general corporate purposes.

As of 30 June 2025, the company’s outstanding borrowings under the Credit Facility consisted of $108.2 million.