A major meal kit company has announced plans to raise $70 million through an initial public offer on the Australian Stock Exchange.
Marley Spoon, a subscription-based meal company, expects to list on the ASX on 2 July, under the ticker MMM, with a market capitalisation of $200 million.
The meal kit category is fast growing as consumers seek greater convenience, but not at the cost of meal quality, and many companies have moved into the market, including HelloFresh, Marley Spoon, Thomas Farms Kitchen, and MyFoodBag.
Marley Spoon began in German and opened in Australia in June 2015, and in March this year launched a budget version of its service called Dinnerly.
The company says most of the funds raised by the IPO will be used to support the continued growth of Marley Spoon’s existing and potential customer base.
Marley Spoon has appointed Deena Shiff as independent chairman, Pat O’Sullivan and Kim Anderson as independent directors, and Christoph Schuh, a Lakestar partner, to its supervisory board.
Marley Spoon CEO Fabian Siegel, said: “As we continue to experience strong growth in our markets, in particular the Australian market, we believe an ASX-listing provides the ideal platform to build our major consumer brands – Marley Spoon, Martha & Marley Spoon, and Dinnerly – for the coming years.”
“As of March this year, Australia represented 37 per cent of Marley Spoon’s revenue and over one third of our global workforce is represented here... However, it is still early days for this kind of service and we are just getting started to make consumers switch over from the supermarket.”
Marley Spoon chairman Deena Shiff said,“Fabian and the team have taken a deliberate and considered approach to market entry and investment.
"In our next phase of growth, and with the benefits of capital raised via the IPO, Marley Spoon is focused on growing its customer base and improving the efficiency of its operations to enhance its market position and delivering sustainable growth for its shareholders.”
Marley Spoon has announced an offer price of $1.42 per CHESS Depositary Interests (CDIs) over ordinary shares, but no general public offer will be made. An institutional offer, a broker firm offer, and a chairman’s list offer will be underwritten by joint lead managers Canaccord Genuity and Macquarie Capital.
The current management and other existing investors, which include Rocket Internet and Lakestar, will retain all of their current holdings, which will represent approximately 66 per cent of Marley Spoon, with escrow agreements in place for 12 to 24 months from listing over approximately 64 per cent of CDIs.
