Snowfox Group IPO: what to know and how to buy shares
Here’s everything you should know about the anticipated initial public offering (IPO) of UK Japanese food supplier Snowfox Group.
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
4. Search for Snowfox Group on our app or platform and open a position
If you want to buy and own Snowfox Group shares, you'd open a share dealing account. If Snowfox Group lists in the UK and they offer a primary market, you could buy shares at the IPO price before the listing for zero commission with us. Alternatively, you could immediately invest in Snowfox Group stock on the day of the listing.
If you’ve traded with us over 3 times within the previous calendar month, you’ll be charged £3 commission and, if you haven’t, then the commission rises to £8.
You can also 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 spread betting or CFD trading account. Whilst Spread bets are commission free, CFDs incur a £10 commission on UK shares.
Footnotes:
1Snowfox Group
2Snowfox Group
3Propelinfo
4CornwallLive
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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