DavidsTea stock increases as much as 39%

DavidsTea Inc, a specialty tea retailer that grew rapidly in the US and Canada, has announced expansion plans after the recent market debut. The company stock increased as much as 39% during the US debut, making the company worth nearly $630 million.

IPO of the company increased approximately $97 million after the stock was priced at $19 per share, more than the top end of the anticipated price range of $17-$18. On Friday, the stock reached a high of $27.24 in early trading on the Nasdaq.

It is the second company from Canada that has been listed on the US exchange this year. Last month, e-commerce software maker Shopify Inc listed its shares on the New York Stock Exchange and the Toronto Stock Exchange.

According to DavidsTea CEO Sylvain Toutant, "It's a multi-occasion type of beverage. We see people buying it for the evening because it's good to relax... On the other side, I take jumpy monkey every morning. It's a good kick start".

The company sells over 150 types of tea through 161 stores in North America; a majority of them are sold in Canada. Most popular brews of the company include Buddha's Blend, an infusion of jasmine pearls, hibiscus blossoms and green tea.

Most of its teas are sold for $7.00-$9.50 for a 50g pack; however Japanese gyokuro loose leaf teas are sold for as much as $19.50. Chief Executive Sylvain Toutant told Reuters that it is interesting to note that millennials are talking a lot about teas as much as they talk about coffee.