The Melbourne-based rice company seeks to raise $6 million and start trading on the Australian Securities Exchange on the last day of August
Forbidden Foods product range
Photo as seen on the company website

Health food manufacturer Forbidden Foods has started an initial public offering as it seeks a listing in the Australian Securities Exchange, ASX. The company is advised by BW Equities, a boutique corporate and investment advisory firm based in Melbourne.

According to the terms send to funds today, the company is calling for bids into the offer by 5 pm on Tuesday next week.

Founded by Marcus Brown and Jarrod Milani in 2010, Forbidden Foods manufactures organic foods, healthy snacks and baby food. Its flagship product, Black Rice, is a rice variety recognised as a superfood staple.

The company offers a diverse range of health foods to retail and foodservice. The company supplies to more than 3,000 retailers, 500 restaurants, and some of the world’s leading food manufacturers.

Beyond Australia, Forbidden Foods exports to customers in New Zealand, Ireland, the US, and Singapore.

Forbidden Foods also offers a ‘better for you’ range of products, including a range of fruit and seeds snacks under the Funch brand, and a plant-based range of flour under the Sensory Mill brand, which the company launched last year.

Forbidden Foods founders Marcus Brown and Jarrod Milani
L-R: Marcus Brown and Jarrod Milani, founders of Forbidden Foods

Forbidden Foods IPO

According to the memorandum send to investors, Forbidden Foods seeks to raise $6 million at 20 cents a share. The company aims to reach a $15 million market capitalisation for the business and an enterprise value of $9 million.

Forbidden Foods said the funds will be used for sales, marketing, product development and administration costs, as well as for general working capital.

In June, Forbidden Foods deployed an investor roadshow and filed the IPO prospectus on Tuesday last week.

The company expects to start trading on the ASX on the last day of August.

Date published: 20 July 2020

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