Overview of Vital Farms’ Initial Public Offering

Vital Farms, a Certified B Corporation that offers a range of pasture-raised food products nationwide, completed an initial public offering (IPO) on August 4th, 2020.

The company boosted its opening stock price, initially planned between $15 and $17, to $22, and the underwriters exercised in full their option to purchase additional shares. Vital Farms’ IPO comes at a time when the ongoing coronavirus pandemic has caused a slowdown in IPO activity, with a 19% decline in deal volume and 8% decline in proceeds in the first half of the year compared to the same period in 2019.

Vital Farms had previously raised an estimated $40.9 million from private investors, including SJF Ventures, Arborview Capital, Sunrise Strategic Partners and Manna Tree Partners. A $25 million round raised in 2018 valued the company at approximately $136 million.

Vital Farms is a leading U.S. brand of pasture-raised eggs and butter by retail dollar sales. Its pasture-raised products, including shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs, are sold in approximately 13,000 stores nationwide. The company is focused on the humane treatment of farm animals and sustainable farming practices, as well as the long-term benefits of each of its stakeholders, including farmers, customers, communities, the environment, crewmembers and stockholders.

At the close of its first day of trading, Vital Farms stock was up nearly 60%, with stock selling at $35, up from its initial price of $22.