Once Upon a Farm (OFRM) Stock Soars 19% in NYSE Debut

OFRM Stock Jumps on Market Debut

Once Upon a Farm, ticker OFRM, experienced a significant surge in its New York Stock Exchange debut, with shares climbing as much as 19% following its $198 million initial public offering. The baby food brand, co-founded by actor Jennifer Garner, demonstrated strong investor interest on its first day of trading.

Market Performance Overview

The company's stock opened at $21, a notable increase from its $18 IPO price. During the trading session, shares reached a high of $21.41 before closing at $20.52, marking a 14% gain from the offering price. The IPO, which marketed shares in a range of $17 to $19, valued the Berkeley-based company at approximately $724 million based on outstanding shares.

IPO Details and Company Background

Once Upon a Farm and its existing shareholders sold around 11 million shares in the offering. The company, initially founded in 2015, saw Jennifer Garner and former Annie's CEO John Foraker join as co-founders in 2017. The prospectus highlighted potential risks, including trade barriers in Mexico and South America, which could impact ingredient sourcing and increase costs. The IPO was led by a group of 11 underwriters, with Goldman Sachs and JP Morgan at the helm.

Summary and Outlook

The successful market debut reflects positive sentiment for the organic baby food brand. However, investors will be monitoring the company's ability to navigate supply chain challenges, particularly the potential trade barriers mentioned in its prospectus, which could affect future profitability and growth.

FAQ

Q: How much did Once Upon a Farm raise in its IPO?
A: The company raised $198 million through its initial public offering.

Q: What was the performance of OFRM stock on its debut?
A: OFRM stock opened at $21 against an $18 IPO price, peaked at $21.41, and closed 14% higher at $20.52.

Q: Who were the lead underwriters for the OFRM IPO?
A: Goldman Sachs and JP Morgan led the 11-firm underwriting group for the IPO.

Source: Investing.com