Jul 24, 2020 - Economy

Egg producer Vital Farms sets IPO terms

Illustration of a chicken with dollar sign eyes

Illustration: Rebecca Zisser/Axios

Vital Farms, the country's largest producer of pasture-raised eggs, set IPO terms to 7.8 million at $15–$17 on Friday. At the midpoint, it would raise $125 million and have an initial market cap of $627 million.

Why it matters: This is about real eggs made by real chickens, not pseudo eggs designed in a lab.

  • That might not have seemed too novel a decade ago, but today's announcement runs counter to the capital markets' hunger for alt-protein and dairy companies.
  • Shareholders include Manna Tree Partners (8.2% pre-IPO stake), SJF Ventures (8.2%), and Arborview Capital Partners (6.6%).

The bottom line: "If consumers keep paying more for products considered ethically produced and more people value those attributes, Vital Farms could have a long runway ahead for growth. It said it has low household penetration of 2% for its pasture-raised shell eggs, compared to the shell egg category penetration of approximately 93%," writes FoodDive.

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