Plant-based burger maker Impossible Foods to go public

Impossible Foods Inc is preparing for a public listing which could value the U.S. plant-based burger maker at around US$10 billion or more, according to people familiar with the matter, Reuters reports.

This would be substantially more than the US$4 billion the company was worth in a private funding round in 2020. It would highlight growing demand for plant-based meat products, driven by environmental and ethical concerns among consumers.

Impossible Foods is exploring going public through an initial public offering (IPO) in the next 12 months or a merger with a so-called special purpose acquisition company (SPAC), the sources said.

The Redwood City, California-based company has worked with a financial adviser to help manage discussions with SPACs after receiving offers at a lucrative valuation, the sources said. Going public through a SPAC could dilute existing Impossible Foods shareholders, however, by a greater extent than an IPO, the sources added.

A SPAC is a shell company that raises funds in an IPO with the aim of acquiring a private company. For the company being acquired, the merger is an alternative way to go public over an IPO.