Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Cal-Maine Foods (CALM) & Vital Foods (VITL):  Are These "Bad Eggs"?

Equity Capital Markets

Vital Farms (VITL US) is getting ready for an IPO on the NASDAQ exchange in the next few weeks. Vital Farms is the largest producer of pasture-raised eggs in the United States. Established in Austin, Texas in 2007,<a href="https://www.fooddive.com/news/pasture-raised-egg-producer-vital-farms-files-for-ipo/581385/" target="_blank" rel="noopener"> Vital Farm's</a> food products are sold in F&amp;B retailers and supermarkets including Whole Foods, Sprouts Farmers Market, Kroger, and Target. Vital Farms promotes itself as a producer of ethically-raised foods, which mainly refers to its chickens and cows that are raised in a more humane environment. For example, instead of the chickens that are raised in harsh, caged environments, Vital Farm's chickens are raised in lush pastures.Vital Farms is essentially the Louis Vuitton of the egg industry. Just as there are consumers that are willing to pay 10x for the price of a bag because it has the brand name Louis Vuitton, there are consumers that are willing to pay two to three times more for the "ethically-raised" Vital Farm eggs rather than the regular, commodity eggs. The underwriters of this IPO include Goldman Sachs, Morgan Stanley, and Credit Suisse. The company is seeking to raise at least $100 million (placeholder) in this IPO.

Vital Farms (VITL US) is getting ready for an IPO on the NASDAQ exchange in the next few weeks. Vital Farms is the largest producer of pasture-raised eggs in the United States. Established in Austin, Texas in 2007, Vital Farm's food products are sold in F&amp;B retailers and supermarkets including Whole Foods, Sprouts Farmers Market, Kroger, and Target. Vital Farms promotes itself as a producer of ethically-raised foods, which mainly refers to its chickens and cows that are raised in a more humane environment. For example, instead of the chickens that are raised in harsh, caged environments, Vital Farm's chickens are raised in lush pastures.Vital Farms is essentially the Louis Vuitton of the egg industry. Just as there are consumers that are willing to pay 10x for the price of a bag because it has the brand name Louis Vuitton, there are consumers that are willing to pay two to three times more for the "ethically-raised" Vital Farm eggs rather than the regular, commodity eggs. The underwriters of this IPO include Goldman Sachs, Morgan Stanley, and Credit Suisse. The company is seeking to raise at least $100 million (placeholder) in this IPO. 

Vital Farms Inc

Vital Farms Inc IPO Preview