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Impossible Foods Inc. is preparing for a public listing that, according to those familiar with the U.S. civilian population, could value about $ 10 billion or more.
That would be significantly more than the $ 4 billion the company was worth in a private financing round in 2020. It would highlight the growing demand for plant-based meat products, driven by environmental and ethical issues among consumers.
Impossible Foods is investigating an initial public offering (IPO) or a merger with a so-called special procurement company (SPAC) in the next twelve months, the sources said.
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The company in Redwood City, California, worked with a financial advisor to help manage discussions with SPACs, after the offers were received at a profitable valuation. However, going public through a SPAC could dilute existing Impossible Foods shareholders to a greater extent than an IPO, the sources added.
A SPAC is a shell company that raises funds in a stock exchange to acquire a private company. For the acquisition of a company, the merger is an alternative way to publish over a stock exchange.
The merger with a SPAC has emerged as a popular IPO alternative for companies that want to publish with less regulatory scrutiny and more certainty about the valuation to be achieved and funds to be raised.
The sources, who requested because the discussions are private, warned that the deliberations were subject to market conditions and that the company preferred to pursue another round of fundraising.
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A spokesman for Impossible Foods declined to comment.
Impossible Foods, including venture capitalists Khosla Ventures and Horizons Ventures, as well as celebrities such as tennis star Serena Williams and rapper Jay-Z, have so far 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 Foods Association (PBFA), US factory-based retail sales rose $ 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 the likes of Burger King and Disney.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| BYND | BEYOND MEAT, INC. | 134.87 | +4.58 | + 3.52% |
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The company said the number of places where citizens of Impossible Foods are sold has increased to more than 20,000 in the past year.
Shares of rival Beyond Meat Inc are trading more than 400% above the IPO price from 2019.
Impossible Foods chief financial officer David Lee stepped down earlier this year to join AppHarvest in in-house farming. David Borecky currently serves as interim chief financial officer of the company.