Freshii Inc.: Then and Now
Freshii, a health restaurant chain based in Canada filed for an IPO in late 2016. The new release was highly successful, being the largest offering in Canada after Aritzia’s clothing line went public earlier on in the year. The restaurant chain gave reports that its offering generated gross proceeds totaling to $125.3 million. Of this amount, the company received $50.1 million while other selling shareholders obtained $75.2 million.
Many positive remarks followed the IPO. Founder of Freshii and participant of CBC’s Next Den Gen Matthew Corrin said, “We are in the earliest days of what I see possible for the Freshii brand. Over the next few years, we are going to double our restaurant count, and I believe we will continue to be one of the most compelling growth stories and stocks in North America.”
On its first day in the markets, the Toronto-based company closed at C$12.22. This was C$0.72 above its issuance price of C$11.50. Based on its then 31.3 million shares, the company stood at a value of C$382.5 million. In an interview on the first day, Mr. Corrin said that his primary focus was not the stock price. “The right thing to do is to continue to focus on our franchise partners and our guests, delivering healthy food and doing it in crave-able ways,” he said in an interview with Bloomberg. “If we do those things I really believe that the stock over the long term will take care of itself.”
The company had, as of 2016, 244 different restaurants in 15 different countries. It has averaged 3.5 new stores a week over the last year. Nevertheless, Mr. Corrin’s views to continue expansions are still broad. “We’ll open as many as prudent,” Mr. Corrin said. “We’ll do as many as we can do as long as we’re continuing to drive our mission of making healthy eating convenient and affordable.”
As of February 2017, Freshii’s stocks were trading at C$14.68. This was a rise of C$0.08 which translated to a 0.55% increase in the stock’s value. It has seen lows of C$14.55 over the month of February. Since its opening, the company’s stock has gone through its various highs and lows in price. In general, the company’s stock has increased in value since its IPO. This is despite Canada’s particularly dismal IPO sector in 2016. The Canadian market suffered a disappointing performance over the year due to varied reasons. These included the shocking Brexit decision as well as an unexpected result in the US election.
Prospects are still bright for the 12-year-old restaurant chain. The Canadian market is expected to improve this year, and that means Freshii’s stock will take on a progressive increase in value. The restaurant plans for the opening of 170 different locations as part of the improvement in the 2017 fiscal year. An increasing number of are adopting the concept of healthy living and this will lead to an increase in consumers for freshii’s healthy living products.
Overall, the company has remained consistent since its IPO. Well played Freshii, well played.