Cloud-based restaurant software company Toast Inc’s (NYSE:TOST) blockbuster New York Stock Exchange debut on Wednesday has made each of the three co-founders' stakes worth over $1 billion.
What Happened: Toast’s market cap soared past $30 billion on Wednesday and lifted the three co-founders — Steve Fredette, Aman Narang and Jonathan Grimm — collective stake to $5.3 billion, CNBC first reported on Wednesday.
Fredette, who owns 33.3 million shares and is the president at Toast, had a stake worth $2.1 billion as of Wednesday’s close.
Grimm, the company’s chief technology officer, holds 26.8 million shares, worth $1.7 billion.
Narang, the chief operating officer at the Boston, Massachusetts-based Toast, owns 24.6 million shares, for a stake valued at just over $1.5 billion.
Why It Matters: As part of the lockup agreement, the three founders are banned from selling any shares for 180 days, implying the value of the could fluctuate by the time they can cash out.
The trio started the company in 2012 after their employer at the time, Endeca, was sold to Oracle Corp (NYSE:ORCL) for $1 billion.
The trio joins a list of tech executives who have seen their net worth balloon amid a booming year for IPOs. The founders of Coinbase Global Inc (NASDAQ:COIN), UiPath Inc (NYSE:PATH), Roblox Corp (NYSE:RBLX) fetched stellar returns as their companies listed publicly.
Toast has partnered with nearly 48,000 restaurant locations and processed more than $38 billion in gross payment volumes over the twelve months ended June 30.
Price Action: Toast shares closed 56.3% higher at $62.51 on Wednesday.