Forbidden Foods, a producer of organic rice, plans to raise AUD6m (US$4.2m) through a public share offering in its home market of Australia.
Based in the Melbourne suburb of Box Hill South, Forbidden Foods plans to list on the Australian Securities Exchange on 31 August. It has priced its shares at 20 Australian cents each, with the offering due to close on 26 August, according to a notice provided to the ASX.
The business was founded by Marcus Brown and Jarrod Milani, and offers rice varieties to the retail and foodservice channels including red, green, brown and white, along with black rice, which is considered a so-called superfood. It has recently launched gluten-free brown rice flakes, and also manufactures savoury snacks and flour mixes.
Forbidden Foods was founded in 2010 and features three brands, Forbidden, Sensory Mill and Funch, according to the prospectus, which noted 30 million shares will be sold, giving the company a market capitalisation of AUD15m based on the offer price. BW Equities Pty is the lead manager for the IPO.
In 2016, the company opened a distribution centre in New Zealand and also exports to Ireland, Singapore and the US.
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The company plans to use the funds to launch products and to increase its market presence at home and abroad, with a plan to introduce “Australian-made baby food products, suitable for both domestic distribution and distribution into Asia” through its Funch brand.
Last year, Forbidden Foods generated revenue of AUD3.4m, which is projected to grow to AUD4.1m in fiscal 2020. Around 90% of its revenue is generated in Australia, and the rest from overseas.