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Doughnuts fill market hole

Issuer: Krispy Kreme DoughnutsDeal: IPOAmount: $72.5 millionDate: April 5 2000Bookrunner: Deutsche Banc Alex Brown

When Scott Livengood took his company public last year, he had two distinct advantages over most other issuers. First, he wasn't a technology or internet company: shares in many of these companies were in near free fall, and would remain volatile for the rest of the year. But Krispy Kreme Doughnuts is a well-established company - it was founded in 1937 - with two distinct characteristics often missing from tech and internet companies: earnings and profits.

And the timing of the IPO, in retrospect, could not have been better. Just a month before the Nasdaq Composite index peaked at over 5000 points, but within a couple of weeks was dropping rapidly. Investors' blind infatuation with internet and tech stocks was coming to an end. And here was a well-established franchise with solid revenues and a good growth story to tell to take up some of the slack.

That's easy to say now, of course.

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