Annie’s Organics is a gateway organic, at least in my opinion. I know, it is bad to use drug-related terms (i.e. marijuana is a gateway drug) when referencing a company that makes foods that are a big hit with children, but it is the best way that I can describe it.
Organic-interested consumer A wanders down the snack food aisle and sees Cheddar Bunnies next to the standard cheese snack cracker and decides to give the organic alternative a try. Next thing you know the consumer starts buying more organic products. This has helped boost the company’s sales, and evidently it has also had a positive impact on Annie’s initial public offering (IPO).
Yesterday was IPO day for the organic food company. Shares of the stock, trading under BNNY, were expected to sell for between $16 and $18 each. Ultimately the company sold 5 million shares at an IPO price of $19. While that was a bit better than expected, that is only part of the story.
At the close of business yesterday, BNNY shares had reached $35.92. If you don’t want to do the math, that is nearly double the IPO price. As I write this article, BNNY shares are up nearly 6 percent from yesterday at $37.91 per share.
Although I’m not an investment professional, I do love seeing an organic and natural food company find success in the stock market. I’ll be keeping an eye on the stock over the next week to see if this initial surge in price was more hype than substance.