Mission Produce sets IPO terms, could see US$1.2B valuation

Mission Produce has set the terms of its initial public offering, in which the California-based avocado company is looking to raise up to $159.38m, Market Watch reports.

The company on Sept. 4 announced that it had filed for an IPO with plans to list on the NASDAQ under the ticker 'AVO'.

The company is offering 9,375,000 shares in the IPO, which is expected to price between $15 and $17 a share. With 69,350,922 shares outstanding after the IPO, the pricing could value the company at up to $1.18bn.

The company intends to use the net proceeds for working capital and other general corporate purposes, which may include the repayment of indebtedness, and to fund future acquisitions.

Mission has customers in more than 25 countries, with four packing facilities in the U.S., Mexico and Peru and 11 distribution and ripening centers in the U.S., Canada, China and the Netherlands.

According to the company’s Form S-1, which companies must file with the SEC before going public, Mission Produce saw revenues from 2009 to 2019 (for the financial years ending Oct. 31), go from $229m to $883m, a 14.5% compound annual growth rate (CAGR).

In the same time, avocado sales by volume went from 172m pounds to 559m pounds, a 12.5% CAGR. At 559 million pounds, the company distributed 58% more fruit than its closest competitor, according to the filing.