Wayne Farms Inc. recently submitted a filing to the Securities and Exchange Commission (SEC) on March 16, 2015 about its initial public offering (IPO). However, investors may have some questions about the Wayne Farms IPO before it hits the market. (Source: The Securities and Exchange Commission, last accessed June 24, 2015.)
Who is Wayne Farms?
Wayne Farms is the sixth-largest producer of boneless chicken breast and boneless chicken thigh, a significant portion of which is raw material for further processing facilities. The company is also a major producer of marinated, breaded, cooked and individually-frozen products for a variety of customers. (Source: Wayne Farms LLC, last accessed June 24, 2015.)
The Georgia-based chicken producer doesn’t promote its own brand. For this reason, the company sells its products under Chick-fil-A, Nestle S.A. (OTC/NSRGY), Boar’s Head Provisions Co. Inc., and Costco Wholesale Corporation (NASDAQ/COST).
What is Wayne Farms’ Business Model?
The company operates a fully vertically-integrated business model which enables them to control every phase of the production process, from feed to final product. Their operations facilities are located across six states throughout the southern United States.
What is Wayne Farms’ Revenue?
The company produced approximately 2.3 billion pounds of chicken products, generating over $2.1 billion in total revenue in the fiscal year ended March 29, 2014—indicating year-over-year growth of 16.7%.
In 2012, there was a net loss of $37.0 million; but in 2013 and 2014, net income turned positive. In 2013 and 2014, net income was $60.0 million, and $115 million, respectively.
What is Wayne Farms’ IPO Price?
The company plans to raise over $300 million in its IPO on Thursday, June 25th. Wayne Farms expects to offer over 12.8 million shares between $18.00 and $21.00 per share through the main underwriters Citigroup, JPMorgan, and BMO Capital Markets.
What is Wayne Farms’ Stock Symbol?
The company has applied to list on NASDAQ under the symbol “WNFM.”
How Will Wayne Farms Use the Money?
The proceeds of the IPO will be used to pay debt, increase working capital and corporate purposes; the reminder will be distributed to the New York-based Continental Grain.