DAVIDsTEA (DTEA) debuted on the Nasdaq Market with a strong first day of trading. 5.1 million shares priced on Thursday night at $19, $1 above the estimated range of $17-$18 and opened for trade on Friday at $25.01. The company originally planned to offer the same number of shares at $14-$16. DTEA is a Canadian-based loose tea retailer that offers a differentiated selection of proprietary blends, pre-packaged teas and tea-related gifts and accessories. There 160 stores in the entire network and 25 of them are in the U.S. in the key cities of New York, Boston, Chicago and San Francisco. CEO Sylvain Toutant tells TheStreet’s Jill Malandrino DTEA is planning on opening 25-30 more stores in Canada and 10-15 in the U.S., clustered around markets where the company already does business. In 2014, Americans consumed over 80 billion servings of tea, or more than 3.60 billion gallons. Approximately four in five consumers drink tea, with Millennials being the most likely, according to TeaUSA.com. Toutant explains the company will be competitive with brands like Starbucks (SBUX) and Teavana because DTEA’s model is very different. Its take on tea is very young and millennial-driven, so DETA’s stores are bright and fun as it tries to make tea accessible for everyone and to raise brand awareness.
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