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.
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.
“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.