Krispy Kreme saw a jump of up to 11.7% in its first trading day.The price of the IPO by the doughnut shop was lower than expected.This company's debut day of trading is not as impressive as other IPOs this week, which saw rises over 68%.Check out more stories from Insider's business page.Krispy Kreme's trading debut on Thursday saw a rise of 11.7% to $19.00 per ShareThe opening price of the doughnut shop franchise was $16.30. This was lower than its IPO, but it then pared down losses. As of Wednesday, 1:05 p.m. ET, shares were trading at $18.50 ET.Krispy Kreme raised $500 Million by selling 29.4m shares at $17. This is below the $21-$24 range. The company offered 2.7 millions more shares than expected. The company's fully diluted market value was $2.9 billion at pricingAccording to David Trainer, CEO at New Constructs, an investment research firm, that valuation was probably too high."We believe the stock is worth less than $1.6 billion. This is slightly more than the $1.35 million JAB Holdings.In 2016, Krispy Kreme was taken private by JAB Holdings. We believe that JAB Holdings is now looking to cash in at theTrainer stated in a recent note that new investors should not be charged for expenses.According to the analyst, Krispy Kreme faces competition from Wendy's and other large food companies like Wendy's as well as shifting consumer preferences towards healthier foods.His research report was entitled "Dough-Not Buy This Overpriced IPO".Krispy Kreme was one of 18 companies that hit the markets in this week's busiest week since December 2004. Its stock hasn’t risen as much as other IPOs so far. During its IPO, Acumen Pharmaceuticals, an Alzheimer's biotech company, soared 68.4% Thursday. Didi rose as high as 28% on Wednesday during its first trading day, while LegalZoom shares soared up to 39% in their debut, and cybersecurity company SentinelOne soared up to 30%.Renaissance Capital reports that there have been 215 IPOs this year. This is an increase of +225.8% over the previous year.J.P. Morgan and Morgan Stanley, BofA Securities; Citi, BNP Paribas; Deutsche Bank, Evercore ISI Goldman Sachs, HSBC Truist Securities and Wells Fargo Securities acted jointly as bookrunners for the Krispy Kreme deal.
