Duckhorn Portfolio stock rises in NYSE debut by Napa Valley wine company
The Duckhorn Portfolio Inc., which owns Sebastopol’s Kosta Browne and Mendocino County’s Goldeneye wineries, began trading in the New York Stock Exchange on Thursday.
The St. Helena wine company offered 20 million shares at $15 per share in its initial public offering. Its stock, which trades under the ticker symbol “NAPA,” closed at $17.18 per share Thursday.
The IPO will raise $300 million for Duckhorn and its investors. The company is owned by private equity group TSG Consumer Partners, which expects to control almost 78% of the overall stock after the initial offering, according to documents filed with the U.S. Securities and Exchange Commission.
The trading was the first notable IPO for an American wine company in about 20 years and will be followed another one in May by Vintage Wine Estates of Santa Rosa. Analysts note that the companies are looking to use the new capital to fund more acquisitions as the sector undergoes consolidation.
In its filing, the company reported it received a $32.5 million insurance settlement in December as a result of flooding at Kosta Browne in February 2019 within The Barlow shopping district in Sebastopol.