IPO hopeful Forbidden Foods launches investor roadshow
May 31, 2020 – 9.31pm
There’ll be plenty of snacks available to hungry small cap fundies at this batch of investor meetings.
Marcus Brown, left, and Jarrod Milani are the founders of Forbidden Foods.
Street Talk understands ASX-aspirant and health food manufacturer Forbidden Foods is gearing up for an investor roadshow blitz this week, to drum up interest for its initial public offering.
Investor sources told this column that Forbidden Foods’ advisor BW Equities was booking in meetings with management from Tuesday, spruiking the company as a mini Freedom Foods.
Founded a decade ago, Forbidden Foods’ main products are different types of organic, non-GMO rice. Its flagship black rice product is marketed as a superfood, with superior health benefits to normal rice.
Fund managers were told the company was raising up to $7 million for its listing, priced at 20¢ a share. The offer price implied an enterprise value of $12 million and indicative market capitalisation of between $18 million and $19 million.
The raising implied an EV to fiscal 2020 forecast revenue multiple of 2.93 times.
The founder-led company sells its health food products to more than 3000 retailers and 500 restaurants, as well as through its own website. The launch of its baby food range known as ‘Funch’ was imminent, potential investors were told.