7 Things to Know About the Upcoming $1.1 Billion IPO of Vita Coco Company (COCO) Stock
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Coconut water maker The Vita Coco Company (NASDAQ: COCO) is set to launch its IPO next week. The IPO will be available for investors on the RobinHood IPO access platform, among other brokerages. Below are seven important things investors should know before the IPO:
1. Vita Coco Company: The Vita Coco Company is expected to have its IPO on October 21, 2021. The stock will trade on the NASDAQ under the ticker 'COCO'. Normally IPOs on the NASDAQ began trading between 10AM-2PM ET.
2. Vita Coco Company IPO Price: The Vita Coco Company IPO is expected to price between $18-21 per share. This could move up or down into the pricing depending on demand.
3. Shares Offered: The Vita Coco Company is offering size 11,500,000 shares of common stock in the offering. The company is offering 2,500,000 shares. The selling stockholders identified in the prospectus are offering 9,000,000 shares. Total shares outstanding after the offering will be 55,496,125 shares.
4. IPO Valuation: A pricing at the mid-point of the range would value Vita Coco at $1.08 billion.
5. Underwriters: The offering is being led by Goldman Sachs, BofA Securities, Credit Suisse, Evercore ISI, Wells Fargo, Guggenheim, Piper Sandler, William Blair.
6. Financials: For the year ended December 31, 2020, the company reported net sales of $311 million, representing a 9% increase from $284 million for the year ended December 31, 2019. For the six months ended June 30, 2021, the company reported net sales of $177 million, representing a 15% increase from $154 million for the six months ended June 30, 2020 primarily driven by a 29% increase in net sales of Vita Coco Coconut Water during the same period. For the year ended December 31, 2020, the company generated gross profit of $105 million, representing a margin of 34% and a 13% increase from $93 million for the year ended December 31, 2019. For the six months ended June 30, 2021, the company generated gross profit of $53 million, representing a margin of 30% and remaining relatively flat in absolute dollar terms compared to $53 million for the six months ended June 30, 2020.
7. Total Addressable Market (TAM): The company operates in the large and growing non-alcoholic beverages industry, which consists of bottled water, carbonated soft drinks, juice, ready-to-drink coffee and tea, energy drinks, sports drinks, drinking milk products and other non-alcoholic beverages. Global non-alcoholic beverages on-and-off combined retail sales exceeded $952 billion in 2020 and are expected to reach $1.36 trillion by 2025, representing a CAGR of 7%, according to Euromonitor. The United States, which is our largest market, generated retail sales of over $119 billion for the 52 weeks ended May 16, 2021, according to SPINS. In line with retail, foodservice also represents a significant opportunity for the company, which they believe expands the total addressable market even further.
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