Impossible Foods Inc is preparing for a public listing that could value factory-based burger makers at an estimated $ 10 billion or more, according to people familiar with the matter.
This will be more than the $ 4 billion the company is worth in private funding in 2020, which will highlight the growing demand for plant-based meat products, driven by environmental and ethical concerns among. Consumer
Impossible Foods is exploring publicly through an initial public offering (IPO) over the next 12 months or a merger with a special purpose acquisition firm (SPAC), the source said.
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The Redwood City, Calif.-Based company has been working with financial advisors to help manage conversations with SPAC after receiving a lucrative valuation offer, the sources said. Public exposure through SPAC could dilute Impossible Foods’ Impossible Foods shareholders, however, the source added, that the IPO was higher than the IPO.
SPAC is a shell company that raises capital in an IPO with the aim of acquiring a private equity firm for acquired companies.A merger is an alternative to go public through an IPO.
Integrating with SPAC has become a popular IPO choice for companies looking to go public with less regulatory scrutiny and more confidence about the valuation that will be attained and the money that will be paid. Fundraising
The source requested because the discussion was private, cautioned that this consideration is subject to market conditions and that the company may opt to run another round of private equity funding.
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An Impossible Foods spokeswoman declined to comment.
Impossible Foods, whose backers include venture capital investor Khosla Ventures and Horizons Ventures, as well as celebrities such as tennis player Serena Williams and rapper Jay-Z, has raised $ 1.5 billion in private markets, according to data from Impossible Foods. PitchBook
In 2020, US plant-based retail sales reached $ 7 billion, up 27 percent year-on-year, according to the Good Food Institute and Plant-Based Foods Association (PBFA).
Founded in 2011, Impossible Foods sells meat-free burgers and sausages in grocery stores, and has also partnered with Burger King and Disney.
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The company said the number of Impossible Foods’ burger stores rose over the past year to more than 20,000 from 150.
Competitor Shares Beyond Meat Inc has traded more than 400% above its IPO price since 2019.
Impossible Foods Chief Financial Officer David Lee stepped down earlier this year to join indoor farm builder AppHarvest, with David Borecky currently serving as the company’s interim CFO.