My Food Bag calls in Jarden ahead of initial public offering

Meal kit company My Food Bag has called in Jarden to help it with its initial public offering and sale.

It is understood that the investment banking firm’s equities team has booked fund managers to meet the company this week.

The AFR reports bankers will be looking for any indications on how investors think it matches up with listed similar businesses Marley Spoon and Youfoodz.

Australia’s Youfoodz had a rough introduction to the ASX in its debut last week. It raised $70 million at A$1.50 a share for its IPO, however it closed day one of trading at A$1.05 and $1.08 by the end of the week.

Earlier this year, My Food Bag enlisted the help of PwC to field interest and test market appetite for a potential sale of the business.

Kevin Bowler, chief executive of the Auckland-based firm, told the Herald in October that the company was gearing up for an initial public offering on the New Zealand Stock Exchange next year – but was unsure if this would be under current ownership or through a new buyer.

My Food Bag is New Zealand’s largest meal kit company and makes about $25 million in earnings before interest, taxes, depreciation and amortisation each year.

The Herald understands the company could be worth between $200m and $400m, depending on how much debt it holds.

My Food Bag has talked about listing on the NZX for about three years.

The company is 70 per cent owned by private company investor Waterman Fund. Co-founders Cecilia and James Robinson and Theresa Gattung each hold an almost 11 per cent stake in the company, while Nadia Lim and her husband Carlos Bagrie hold a 5.4 per cent stake.

Bowler said the business had grown to a point where it was ready for a transaction, and an IPO would be the icing on the cake for the company, which was founded in 2012.

My Food Bag was the first company of its kind to launch in the market and began sending out food boxes across Auckland before expanding throughout New Zealand.

The onset of the Covid-19 pandemic and the first lockdown sent the business into overdrive. It experienced an initial spike in orders in April, and in that time opened another Auckland boxing facility to keep with demand, but the growth of between 10-20 per cent had sustained, Bowler said.

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