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Bakkavor scraps plans to float IPO

FBR Staff Writer Published 06 November 2017

Bakkavor, a UK-based fresh prepared food manufacturer, has scrapped its previously announced plans to seek an initial public offering (IPO) on the London Stock Exchange (LSE).

The company stated that given the prevailing volatility in the IPO market, going ahead with the transaction would not be in the best interests of its business, or its shareholders, in spite of getting enough institutional demand to float the offering.

Bakkavor says that it will carry on implementing its strategy within the fast-growing fresh prepared food sector, where its expertise and focus on innovation have made it a clear leader in the market.

In a statement, the company said: “The Group’s ability to deliver long-term sustainable growth is underpinned by its strong financial position.

“The business continues to trade well and against this backdrop, the Board remains confident in the outlook for the Group.”

Last month, Bakkavor had revealed its intentions to trade on LSE’s main market for listed securities to raise proceeds of around £100m, in order to further invest in the business.

The company, then, stated that it wanted to float on LSE rather than the US and Chinese stock exchanges. This, it said was because the US and China markets are not as well developed as the UK fresh prepared food (FPF) market.

The London-headquartered Bakkavor was established in 1986 and has a workforce of nearly 19,000 employees. It has operations across 26 factories in the UK, three in the US and eight in China where it prepares meals, salads, desserts, and pizza and bread products.

Bakkavor’s customers include UK grocery retailers like Tesco, Marks & Spencer, Waitrose and Sainsbury’s which sell its products to consumers under their respective brands.


Image: Bakkavor manufactures pizzas and other prepared food products. Photo: courtesy of KEKO64/Freedigitalphotos.net.