My Food Bag heading to the stock market

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Investors are being offered a slice of a local success story with food delivery service My Food Bag finally confirming plans to sell shares and list on exchanges on both sides of the Tasman in March.

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Photo: Facebook / My Food Bag

The company said there had been strong interest from customers, staff, and investment funds about buying into the business.

It has filed its product disclosure statement explaining its offer of 185 million shares at $1.85 each, valuing the business at $449m.

My Food Bag board chair Tony Carter said the new funds would be used to pay down debt and fund further investment.

“Our growth will be underpinned by continued leadership in the meal kit market and expanding our food-based offerings to align [with] consumer trends, so we can play a bigger part in Kiwi customers’ lives.”

New Zealand based investment funds, Milford Funds, Harbour Asset Management, and Investment Group Services have all committed to buy 5 percent of the company.

More than 10,000 customers and staff members have already signed-up to received a priority allocation of shares.

The company is controlled by private equity firm Waterman Capital, which took a 66 percent stake four years ago and has flirted with the idea of going public since it was founded back in 2012.

Waterman Capital board member and founder Chris Marshall said the company had the potential to expand more broadly within the food and grocery sector.

“The business is extremely innovative and customer-centric, which is an exciting combination. In addition, the online food delivery sector is the beneficiary of some very favourable long-term macro trends.”

My Food Bag’s net profit for the six months to September more than doubled on the previous year to $7.6m.

Revenue for the period grew more by more than $28m on the year earlier to $105.3m, as the company recorded a 22 percent increase in deliveries as consumer demand grew because of Covid-19.

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