Annie’s Inc., maker of organic and natural foods, enjoyed an 89 per cent surge in shares during its trading debut on Wednesday. Trading closed at $35.92 (U.S.), selling 5 million shares in all above the initial offering of $16-8, causing analysts to comment that the company may have priced its shares too low.
Having raised $95-mln in its initial public offering, Annie’s was the biggest opening day gain for a U.S. stock IPO since LinkedIn went public last May. This has been the biggest IPO in 2012 so far, valuing the company at $316.3-mln.
The Berkeley, Calif.-based company holds substantial marketshare in the $40-bln strong organic and natural foods industry, according to the company’s Securities and Exchange Commission filings.
The company’s signature mac and cheese and rabbit mascot-shaped pastas and biscuits are sold in mainstream grocery chains across North America, with most of its 25,000 stores being based out of the U.S.
Net proceeds – just $11.6-mln – will be put towards paying back the company’s debt.
Source: “Cheddar-Bunny Maker Annie’s Surges In Trading After IPO,” Bloomberg
____
For more, follow us on Twitter at @torontostandard and subscribe to our Newsletter.
