My Food Bag joins New Zealand share market

Thursday, 4 March 2021

My Food Bag says “thousands” of New Zealand retail investors have bought shares in the company, which lists on the NZX main board and ASX on Friday.

It said it would be the largest IPO by amount raised since 2014 but would not disclose the final number of retail investors who had taken shares – except to say that it had been fully subscribed and applications were scaled.

The company had planned to sell up to 185 million shares, valuing it at just under $450 million.

It said on Thursday that its existing shareholders were retaining 25 per cent of the company post-IPO, in line with initial plans to sell 75 per cent.

* My Food Bag valued at $450m ahead of sharemarket listing

* My Food Bag offers customers and staff first dibs for shares in the company

Existing shareholders will get a windfall in the listing.

Of the approximately $342 million being raised, just $54.8m will end up in My Food Bag’s pocket, with $16.7m used to fund offer costs, $38.2m to repay bank debt, and $287.3m going to existing shareholders who are selling their shares.

Fund managers Milford Funds Limited, Harbour Asset Management Limited and Investment Services Group Limited had earlier indicated they would take shareholdings greater than 5 per cent.

It said earlier that 10,000 customers and employees had indicated non-binding interest in its priority offer, in which they were offered shares at $1.85 each.

“Their timing is good in the sense that there's an awful lot of cash on the sidelines looking for a home, and in this low-interest rate environment a 5 per cent yield is attractive,” said Pathfinder chief executive John Berry.

“Online businesses like My Food Bag have had strong tailwinds through 2020 with lockdowns and consumers changing behaviour. And let's face it, there's been a massive shortage of IPOs in the New Zealand market for years.”

Chairman Tony Carter said “I would like to welcome all of our new shareholders to the My Food Bag family. We are particularly delighted to welcome so many of our customers as shareholders following their participation in the Foodies Offer.

“Today marks the culmination of eight years’ work. We’ve grown from a Kiwi start-up beginning life on the kitchen bench to becoming a New Zealand food powerhouse, inspiring thousands of Kiwi families to eat better each night of the week.

“On behalf of the My Food Bag Board, I want to thank our team for their dedication through this demanding process and we look forward to the future.”

Looking ahead, the company plans to offer further recipe choice across more products.

My Food Bag operates within the $37 billion New Zealand retail food market and has delivered more than 85 million meals since the business began trading in 2013.

My Food Bag expects revenue to jump to $189.5m in the year to March 31, from $153.3m last year. That’s expected to slip to $186.4m next year.