Organic children's snack manufacturer Once Upon a Farm, PBC (OFRM.US), co-founded by Hollywood actress Jennifer Garner, has priced its initial public offering at $18 per share. The price is at the midpoint of the $17 to $19 offering range. The company raised $198 million by issuing 11 million shares, with 31% of the shares sold representing a secondary offering by existing shareholders. At this pricing, the company's fully diluted market valuation reaches $811 million.
The company specializes in producing organic, refrigerated foods for infants and young children. Its core product lines include cold-pressed pouches, oatmeal bars, dry snacks, and frozen meals, designed to offer convenient, on-the-go options for consumers. Its products are distributed through retail partners and online channels, currently available in over 3,200 stores, with online sales accounting for 40% of total revenue.
According to regulatory filings, for the nine-month period ended September 30, Once Upon a Farm reported revenue of $176.7 million and a net loss of $39.8 million. This compares to revenue of $107.6 million and a net loss of $11.6 million for the same period in the prior year. The gross margin for the first nine months of the current year was 40%, down from 42% a year earlier. Filings indicate that pouch products contribute the majority of the company's net sales.
The company's products are stocked in the refrigerated sections of more than 2,800 physical retail locations, including Walmart (WMT.US), Target (TGT.US), Amazon's (AMZN.US) Whole Foods, and Kroger (KR.US). Once Upon a Farm plans to list on the New York Stock Exchange under the ticker symbol "OFRM".
Goldman Sachs, J.P. Morgan, BofA Securities, William Blair, Barclays, Evercore ISI, Deutsche Bank, Oppenheimer & Co., and TD Cowen are acting as joint book-running managers for the offering.
The IPO performance of consumer-facing companies has been relatively subdued in recent years. Data shows that while companies in this sector raised $17.4 billion through U.S. exchange listings in 2021, the total fundraising since then amounts to only approximately $15.6 billion. Since their respective IPOs, Cava Group (CAVA.US) and Amer Sports (AS.US) have seen significant share price appreciation, while Webtoon Entertainment (WBTN.US) has underperformed.
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