© Reuters. FILE PHOTO: Plant-based beef products from Impossible Foods seen at the meat stall of a supermarket chain in Hong Kong
By Anirban Sen and Joshua Franklin
(Reuters) – Impossible Foods Inc is preparing for a public listing, which could price the US-based burger maker at around $ 10 billion or more, according to people familiar with the matter.
This figure will be substantially higher than the $ 4 billion that the company is worth in a private funding round by 2020. It will highlight the growing demand for plant-based meat products, as consumer ethical and environmental concerns.
The sources say that Impossible Foods is exploring a public offering through an Initial Public Offering (IPO) over the next 12 months or a merger with a company known as an intent acquisition. special (SPAC).
Sources say the Redwood (NYSE 🙂 City, California-based company worked with a financial advisor to help manage discussions with SPAC after receiving an offer at an attractive valuation. . However, going public through the SPAC could dilute Impossible Foods’ current shareholders to a greater extent than the IPO, the sources added.
SPAC is a shell company that raises funds in an IPO with the aim of acquiring a private company. For the company to be acquired, the merger is an alternative to going public through an IPO.
Merging with SPAC has emerged as a popular IPO alternative for companies seeking to go public with less regulatory scrutiny and more certainty about what valuation will be reached and how much money will be earned. mobilize.
Sources, who have asked because the discussions are private, warn that these discussions are subject to market conditions and that the company may choose to pursue another round of private funding.
An Impossible Foods spokesperson declined to comment.
Impossible Foods, whose backers include venture capitalists Khosla Ventures and Horizons Ventures, as well as celebrities like tennis star Serena Williams (NYSE 🙂 and rapper Jay-Z, have so far raised raised $ 1.5 billion in the private market, according to PitchBook data.
According to a report by the Good Food Institute and the Plant-Based Food Association (PBFA), by 2020, the US plant-based retail sales of goods reached $ 7 billion, up 27% year-on-year.
Founded in 2011, Impossible Foods sells meat-free burgers and sausages in grocery stores and also partnerships with Burger King and Disney.
The company says the number of Impossible Foods burgers locations has grown to more than 20,000 in the past year from 150 stores.
The shares of rival Beyond Meat (NASDAQ 🙂 Inc are trading 400% higher than the IPO price from 2019.
Impossible Foods CFO David Lee resigned earlier this year to join in-house farm builder AppHarvest, with David Borecky currently serving as the company’s interim CFO.
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