IPO Watch: My Food Bag becomes latest meal kit delivery stock to list on the ASX; but shares fall

New Zealand based meal kit delivery company My Food Bag (ASX:MFB) has listed on the ASX but its shares have dropped on debut.

The company is the fourth to list on the ASX focused on food delivery, the most prominent of which is Marley Spoon (ASX:MMM) which has grown over 900 per cent in 12 months off the back of increased demand due to COVID-19.

The other two are Youfoodz (ASX:YFZ) which is a direct player and Dragontail Systems (ASX:DTS) which has software for restaurants which manages food delivery among other processes.

My Food Bag debuted on the ASX (as well as the NZX) at $1.85 per share and upon debut on the ASX fell to $1.65 – a 10.8 per cent decline.

Meanwhile, across the ditch its NZX shares were down 7 per cent as of 11am (AEDT).

My Food Bag (ASX:MFB) share price chart

My Food Bag the fourth food delivery stock on the ASX

My Food Bag reports seeing this increased demand during COVID-19, still able to operate at the height of New Zealand’s restrictions last year as an essential service. It claims to have delivered over 85 million meals since it began and the market is $37 billion in New Zealand alone.

Chairman Tony Carter and Kevin Bowler both said today’s listing was a significant step from the company’s founding in 2013 as a startup on a kitchen bench.

“Since our inception, we have a proven record of successful growth, consistently bringing exciting products and recipes to market that cater to New Zealand’s changing consumer food, demographic and societal trends,” CEO Kevin Bowler added.

Biggest NZ IPO since 2014

While there’s been no shortage of IPOs on the ASX in recent years and months, there has been very few in New Zealand due to the exchange’s lower liquidity and number of companys listed.

But My Food Bag is the biggest by capital raised on the NZX since 2014.

My Food Bag told shareholders the majority of investors in its IPO were New Zealand investors both institutional, retail and even some of the company’s own customers and staff.

The most prominent institutions were Milford Asset Management and Waterman Private Capital which, according to notices lodged with the ASX, hold stakes of 6.35 per cent and 15.74 per cent respectively.