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Update: By the close of trading YFZ shares had fallen 30 per cent today to $1.05 each.
Australian investors have taken a circumspect approach to the listing of iconic prepared meals company Youfoodz (ASX: YFZ) with shares falling by almost 22 per cent in early trading.
The Brisbane-based company successfully raised $70 million at $1.50 per share through its initial public offering (IPO), which is aimed at funding various initiatives including the construction of a high-tech manufacturing facility to massively scale-up production to reach more consumers across Australaisa.
In a recent interview with Business News Australia, Youfoodz founder and CEO Lance Giles said the custom-built facility would be a "step change" for the business.
In an update released to the market today, Youfoodz emphasised unaudited management accounts showed it remained on track to meet its FY2021 prospectus forecasts, including net revenue of $149.9 million.
"We are pleased to confirm that sales momentum in our B2C segment has continued, supported by the successful launch of next day delivery in Sydney in early November 2020 and the subscription service offering introduced in June 2020 which is driving improved customer retention," says Giles.
"The B2B segment is also benefiting from the easing of COVID-19 restrictions and the increased foot traffic in grocery and petrol and convenience channels."
Related story: Youfoodz IPO aims to triple deliveries to 1.1 million meals per week
He explains the IPO gives Youfoodz the funding and flexibility to support its growth strategy.
"Youfoodz' growth strategy is focussed on expanding our product offering across Australia and continuing to drive category growth in both the B2C and B2B segments of the fresh, ready-made meal market," he says.
"In addition, the Company is currently in discussions with developers to construct a new purpose-built manufacturing facility in Brisbane which will drive increased manufacturing automation that will unlock operational efficiencies for the businessmarket."
The founder says today marks a significant milestone for Youfoodz and its mission to make it easy for all Australians to access fresh and healthy ready-made meals with quality ingredients sourced from local growers.
"I would like to acknowledge and thank the Youfoodz team for their ongoing hard work and dedication to both our company and our customers," he says.
"I know they share my excitement about the future for the company and together we welcome our new shareholders and thank them for their support."
The IPO attracted demand from domestic and international institutions, retail investors and existing Youfoodz shareholders.
Bell Potter and Morgans acted as joint lead managers to the IPO with Greenhill acting as financial advisor and Baker McKenzie acting as legal advisor.
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