06/05/2015 11:21 EDT | Updated 06/05/2016 05:59 EDT

Davids Tea debuts up 33% on Nasdaq after IPO

Shares in Montreal-based chain Davids Tea rose 33 per cent today, the first day of trading for the company after an IPO.

The shares, trading under the ticker symbol DTEA on the Nasdaq, were priced late Thursday at $19 US a share, $1 above the high end of the company's estimate of between $17 and $18 a share.

Late in the morning Friday, Davids Tea shares were changing hands for more than $25 a share, up by more than a third from the IPO price.

The company has sold 5.1 million shares. It owns 136 tea shop locations across Canada and 25 in the U.S. 

Co-founders David and Herschel Segal sold about two million of the shares on offer.

Herschel Segal, who also founded the Le Chateau Inc clothing chain, retains a 53.4 per cent stake in Davids Tea through his Rainy Day Investments Ltd. David retains about seven per cent of the company that bears his name after the IPO.

Davids Tea has said it would use its share of the proceeds to repay debts to its shareholders and lenders.

The rest of the funds will be used for operations, including expanding its online offerings.