April 9, 2021

Impossible Foods plans to be listed on the stock market

Major United States plant-based burger marker Impossible Foods is preparing to list on the stock market, which could value the company at US$10 billion or more, Reuters reported.

This will significantly boost the US$4 billion value the company was worth during a private funding round last year, and highlight rising demand for plant-based meat products.

Sources told Reuters that Impossible Foods is looking to go public over the next 12 months through an initial public offering (IPO) or a merger with a special purpose acquisition company (SPAC). However, going through a SPAC may dilute Impossible Foods shareholders compared to an IPO.

The sources also said going public is subject to market conditions and Impossible Foods could decide to pursue another round of private fundraising.

An Impossible Foods spokeswoman declined to comment on the company going public.

According to PitchBook data, the company has raised US$1.5 billion in the private market through venture capital investors Khosla Ventures and Horizons Ventures, and through celebrities like Serena Williams and Jay-Z.

Based on a report by the Good Food Institute and the Plant-Based Foods Association (PBFA), plant-based retail sales in the United States reached US$7 billion, 27% higher year-on-year.

The company was founded in 2011, with their products available in more than 20,000 locations such as Burger King and Disney.

Competitor Beyond Meat is trading at more than 400% above its IPO price from 2019. Beyond Meat has also announced the opening of its new plant-based manufacturing facility in China.

- Reuters