Annie’s Organic Food Company’s giant splash on the market last month had many investors jumping for their wallets. The well-recognized brand, known for its organic and affordable foods, as well as its bunny mascot, had the biggest opening day gain for an IPO of this year. With a growing organic consumer market within the U.S. and Annie’s’ recent rapid growth and overall success as a company, many investors feel confident in chasing this cheddar. However, Annie’s’ does have some potential risk factors, and initial success does not always sustain long-term success.
After going public on The New York Stock Exchange on March 28; the company sold 5 million shares at $19 a share. The company, which trades under the ticker symbol BNNY, than nearly doubled its shares to $35.92 a pop. This was a notable 89 percent increase by the end of opening day. The projected range for the company’s share was originally $16-$18 a share.
“This is a really important step for the company,” said John Foraker, Annie’s chief executive. “Organic was considered a niche business 15 years ago, now it’s mainstream.”
The company, which began in 1989, was created by a husband and wife duo; named Annie Withey and Andrew Martin. According to Annies’ website, “the goal of the company was to give families healthy and tasty macaroni and cheese and to show by example that a successful business can also be socially responsible.” The company was originally only known for their macaroni and cheese dinners. The couple began selling the dinners in New England to regional supermarkets and independent natural retailers.