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Local poultry producer withdraws IPO
Wayne Farms says 'market conditions are not favorable'
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Citing an unfavorable market, an Oakwood-based poultry producer has withdrawn its planned initial stock offering.

The news comes less than two weeks after Wayne Farms filed for the IPO with the Securities and Exchange Commission, aiming to raise $234 to $269 million — selling 12.8 million shares at between $18 and $21 per share.

“Although we are disappointed, the current overall market conditions are not favorable for the company to receive an appropriate valuation at this time,” said Courtney Fazekas, chief financial officer of Wayne Farms.

On June 19, four days after the company’s filing, Transcend Event Driven Research — a Wall Street research firm — advised potential Wayne Farms investors of the possibility for “substantial risks due to peak operating profits in a cyclical industry, an expensive valuation and corporate governance concerns related to voting control Post-IPO.”

Fazekas said withdrawal of its IPO “will not affect our ability to meet our growth objectives.”

Wayne Farms is the sixth-largest vertically-integrated poultry producer in the United States, with annual sales exceeding $1.9 billion.

A subsidiary of Continental Grain Co., Wayne Farms owns and operates 11 fresh and further-processed facilities throughout the Southeast, produces more than 2.6 billion pounds of poultry products each year and employs more than 8,900 workers.

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