Vital Farms saw its share price surge on Friday (31 July) as the US-based producer of “ethical” eggs and butter made its debut on the Nasdaq Global Select Market in New York.
Austin, Texas-headquartered Vital Farms, which is led by president and chief executive Russell Diez-Canseco, had priced the more than 9.3 million shares on offer at US$22.00. The stock closed at $35.26 on Friday, a gain of 60% on the day.
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Before winning the listing, Vital Farms had said in its prospectus the company would use the proceeds to increase its capitalisation and “financial flexibility”, and possibly for M&A. It is also seeking to invest $15m in its Egg Central Station plant.
Last year, the business generated revenues of $140.7m and a net profit of $3.3m. In 2019, Vital Farms received undisclosed backing from private-equity firm Manna Tree Partners in Colorado, and also previously from Sunrise Strategic Partners.
In producing ethical eggs, Vital Farms launched a traceability programme earlier this year whereby consumers can access video footage of where the eggs were laid.
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“Vital Farms partners with about 200 small family farms that focus on animal welfare, including year-round access to pastures. The 360° pasture videos feature each family farm and the videos will be updated at least twice a year to ensure consumers get an accurate view of the hens’ environment,” a statement on its website reads.
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