Snowfox Group IPO: what to know and how to `buy´ shares

What does Snowfox Group do?

Snowfox Group is an international leading Japanese food supplier selling over 60 million sushi trays a year. The company operates across Canada, the US and the UK, bringing together four Japanese food brands, Taiko, Bento, Snowfox and Yo!

The group has become one of the largest Japanese food providers outside of Japan. Not only do they own the popular conveyor belt restaurant Yo Sushi which operates in the UK, they also supply products to sushi kiosks, supermarkets and food suppliers across Canada, the US and the UK providing restaurant quality food with grab-n-go convenience.

Who are Snowfox Group’s competitors?

Arguably, Snowfox Group’s biggest competitor in the Japanese food and beverage space is AFC Sushi, who distribute food to over 4000 sushi kiosks and supermarkets across Canada, Australia and the US.

Unlike Snowfox Group, AFC Sushi doesn’t own any restaurants and their business model exclusively consists of kiosks and wholesale distribution. That said, at Snowfox Group, restaurants account for only 15% of the overall company¹ meaning both food providers gain their main income streams the same way.

Despite this, Snowfox Group’s CEO Stacky Kwon doesn’t seem worried and claims to see many opportunities for future growth within the space.

Other competitors include Ace Sushi, Sarku Japan and Komotodo.

When could the Snowfox IPO happen?

Over the past couple of years, there has been much speculation as to when/if there could be a Snowfox Group initial public offering (IPO).

In 2022 an IPO seemed very likely to occur in March/ April of that year after reports the company was working with Barclays, Peel Hunt and Jefferies to make this happen.

These plans however were postponed due to volatility in the stock market as a result of high inflation and the Russo-Ukranian war.

Although it’s possible that Snowfox Group may launch an IPO sometime in the future, there doesn’t seem to be any indication that this will happen in the coming year.

What could Snowfox Group's stock price be?

Snowfox Group has an estimated private valuation of around £750 million.

The first seven months of last year saw a sales increase of 60% on a year-over-year basis.²

The group also had access to a £5 million revolving credit facility, helping them to keep on top of their cash flow.³

There is no indication yet as to what Snowfox Group’s share price will be. Details of this will be announced closer to the launch date.

What’s the outlook for the Snowfox IPO?

The outlook for Snowfox Group’s IPO depends on how the company performs over the next financial year.

The company’s decision to prioritise its wholesale and distribution channel over its restaurants has allowed a relatively quick recovery from the turmoil caused by the pandemic compared to other players in the food and beverage industry.

Last year, the company continued to grow, opening 200 new sushi kiosks in the UK alone⁴ and expanding its distribution channels to reach popular supermarkets such as Waitrose and Lidl.

It’s worth noting that a profitable 2023 is dependent on many factors outside the company’s control. These include consumer trends, economic instability and geo-political events meaning a profit is far from guaranteed.

Snowfox IPO: How to`buy´shares

Once Snowfox shares do launch, here’s how you can buy some:
1. Research Snowfox Group
2. Decide whether you want to trade or invest
3. Open an account with us
4. Search for Snowfox Group on our app or platform and open a position

With us, you can trade Snowfox Group shares with derivatives. This enables you to take advantage of rising and falling markets by going long or short. You can also trade with leverage, this is where your trade size is larger than your initial margin meaning you could gain or lose money faster than expected.

To do this you would open a CFD trading account. CFDs incur a £10 commission on UK shares.

Footnotes:
¹Snowfox Group
²Snowfox Group
³Propelinfo
⁴CornwallLive