Wayne Farms decided on June 25 to postpone its previously announced initial public offering (IPO).
The sixth largest broiler company in the United States had sought to raise $250 million by offering 12.8 million shares at a price ranging from $18 to $21. However, Wayne Farms, a subsidiary of the privately-held Continental Grain Co., stated in an email that current market conditions were not conducive to an IPO.
“Although we are disappointed, the current overall market conditions are not favorable for the company to receive an appropriate valuation at this time. We are committed to executing our business plan and have the financial strength to make this plan a reality. Wayne Farms management continues to enjoy the strong support and access to the resources of Continental Grain. We believe that our decision to withdraw the IPO will not impact our ability to meet our growth objectives," stated Courtney Fazekas, Chief Financial Officer of Wayne Farms."
Paul Fribourg, chairman and CEO of Continental Grain, stated in November 2014 that it was considering an IPO for Wayne Farms as a way to gain capital as the current commodities cycle takes another turn.
J.P. Morgan and BMO Capital Markets were set to be the joint bookrunners on the deal.
Wayne Farms had planned to list on the NASDAQ exchange under the symbol WNFM.
Wayne Farms, according to the WATTAgNet Top Poultry Companies Database, in 2014 processed 45.39 million pounds of ready-to-cook chicken on a weekly basis. The company operates nine slaughter plants, nine hatcheries, eight feed mills and 3,575 growout houses.