In preparation for its upcoming initial public offering (IPO), Austin, Texas-based Amplify Snack Brands revealed a price target and expected launch date of August 5, 2015. Here’s what investors need to know about the upcoming Amplify IPO.
Who is Amplify?
Amplify is a fast-growing snack brand which is capitalizing on the growing demand for better-for-you (BFY) ready-to-eat (RTE) foods. The company’s flagship brand, “SkinnyPop” is a highly profitable and market-leading popcorn product that has experienced exponential growth in revenue since 2012.
What is Amplify’s Business Model?
Amplify has rode the recent wave of consumer preference for healthier foods, marketing itself as a high-quality alternative to traditional RTE snacks. The company develops, markets, and distributes popcorn and tortilla chips across most North American supermarkets.
How Big is Amplify’s Portfolio?
The company is growing at a rapid pace, having acquired Paqui Tortilla Chips in April 2015, and has announced plans to make more acquisitions in the future.
Revenue increased from $16.0 million in 2012 to $132 million in the first half of 2015, and Amplify plans to aggressively expand this figure in 2016.
What is Amplify’s IPO Price?
The target price for Amplify’s IPO is between $14.00 and $16.00 per share. Using a mid-point estimate, and assuming the 15 million shares are fully subscribed, proceeds from the IPO could raise between $225 million and $240 million in equity. Given the media coverage surrounding this IPO, you can expect it to trade at a premium at opening.
What is Amplify’s Stock Symbol?
Amplify plans to be listed on the New York Stock Exchange under the ticker symbol “BETR.”
How Will Amplify Use the Money?
All Amplify shares sold during the IPO are sold by the selling shareholders, and no actual money will be raised by the company itself. Major shareholders include private equity firm TA Associates, as well as other PE firms and management.
Nevertheless, Amplify’s long-term strategy will be to maintain its brand growth while diversifying its products into new categories.