The United States based plant based burger maker Impossible Foods Inc has been reported to be getting ready to get itself publicly listed at a potential valuation of about $10 billion or more, claimed reports quoting information from sources with knowledge of the matter.
That would be more than two and half time the $4 billion valuation that the company was given during a private funding round last year. If the deal goes through and the company achieves this valuation, it would underscore the increasing demand for plant based meat products among customers who are driven growing concerns for the environment and ethics.
According to reports quoting sources, the US firm is considering going public sometime within the next twelve months either through an initial public offering (IPO) or via a merger with a so-called special purpose acquisition company (SPAC).
The sources said that after receiving offers at a lucrative valuation, a financial advisor has been appointed by the Redwood City, California based company to aid it in its negotiations with the SPACs. The reports said that compared to going public through an IPO, getting publicly listed using a SPAC could result in dilution of the existing shareholding pattern of the company.
A SPAC is essentially a shell company that uses an IPO to raises funds with the aim of acquiring a private company and thereby taking it public as well in the process. Such a merger with a SPAC is an alternative way for the company being acquired to go public instead of going through the elaborate process of an IPO.
In recent times, the SPAC route to public listing has been opted by many companies as an alternative to launching an IPO because it draws in much less regulatory scrutiny while also offering higher certainty over the valuation for a company intending to go public and surety that funds will indeed be raised.
The reports however also cautions that the talks being held by Impossible Foods are in the initial stages and their success is subject to market conditions and the US firm might choose to use another private fund raising round instead.
There was no comment available on the issue from Impossible Foods.
According to PitchBook data, Khosla Ventures and Horizons Ventures, as well as celebrities like tennis star Serena Williams and rapper Jay-Z are among the investors in Impossible Foods and the company has so far raised $1.5 billion in the private market.
According to a report by the Good Food Institute and the Plant-Based Foods Association (PBFA), the value of retail sale of plant based food in the United States was at $7 billion in 2020 which was 27 per cent higher than the previous year.
Meat-free burgers and sausages are sold in grocery stores by Impossible Foods which was founded in 2011, in addition to partnering with the likes of Burger King and Disney. The company has said that the number of locations where Impossible Foods’ burgers are sold has increased to more than 20,000 from 150 stores in the last year.
(Source:www.reuters.com)
That would be more than two and half time the $4 billion valuation that the company was given during a private funding round last year. If the deal goes through and the company achieves this valuation, it would underscore the increasing demand for plant based meat products among customers who are driven growing concerns for the environment and ethics.
According to reports quoting sources, the US firm is considering going public sometime within the next twelve months either through an initial public offering (IPO) or via a merger with a so-called special purpose acquisition company (SPAC).
The sources said that after receiving offers at a lucrative valuation, a financial advisor has been appointed by the Redwood City, California based company to aid it in its negotiations with the SPACs. The reports said that compared to going public through an IPO, getting publicly listed using a SPAC could result in dilution of the existing shareholding pattern of the company.
A SPAC is essentially a shell company that uses an IPO to raises funds with the aim of acquiring a private company and thereby taking it public as well in the process. Such a merger with a SPAC is an alternative way for the company being acquired to go public instead of going through the elaborate process of an IPO.
In recent times, the SPAC route to public listing has been opted by many companies as an alternative to launching an IPO because it draws in much less regulatory scrutiny while also offering higher certainty over the valuation for a company intending to go public and surety that funds will indeed be raised.
The reports however also cautions that the talks being held by Impossible Foods are in the initial stages and their success is subject to market conditions and the US firm might choose to use another private fund raising round instead.
There was no comment available on the issue from Impossible Foods.
According to PitchBook data, Khosla Ventures and Horizons Ventures, as well as celebrities like tennis star Serena Williams and rapper Jay-Z are among the investors in Impossible Foods and the company has so far raised $1.5 billion in the private market.
According to a report by the Good Food Institute and the Plant-Based Foods Association (PBFA), the value of retail sale of plant based food in the United States was at $7 billion in 2020 which was 27 per cent higher than the previous year.
Meat-free burgers and sausages are sold in grocery stores by Impossible Foods which was founded in 2011, in addition to partnering with the likes of Burger King and Disney. The company has said that the number of locations where Impossible Foods’ burgers are sold has increased to more than 20,000 from 150 stores in the last year.
(Source:www.reuters.com)
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