The Parsley Box IPO: what you need to know

Parsley Box is set to IPO on the AIM market on March 31 at 200p per share. Discover everything you need to know ahead of the IPO and how you can take a position on the shares once they list.

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What is Parsley Box?

Parsley Box is a direct-to-consumer provider of ready meals for the 57+ age group (baby boomers and up). All the meals are cupboard stored, rather than frozen, and can be ordered online straight to the consumer’s door.

When is the Parsley Box IPO?

The Parsley Box IPO is set for March 31, when its shares will start dealing on the Alternative Investment Market (AIM). The Edinburgh-based business is raising £5 million, while existing shareholders are expected to pocket £12 million by reducing their stakes.

The IPO has attracted a lot of support from investors and was actually oversubscribed. The IPO included an option for customers to buy shares directly, which accounted for 7.6% of the IPO, with all customers who applied for shares getting 100% allocation.

Once the shares are listed on AIM, customers who received an allocation will be able to sell on their holdings on the open market. Approximately 45.5% of the shares are expected to re-enter circulation, known as ‘free float’.

Learn how IPO subscriptions and the stock market work.

How much is Parsley Box worth?

Parsley Box has been valued at £83.8 million in its upcoming IPO. Its shares are being priced at 200p each.

The company raised £5.2 million through the placing of shares earlier in the year to fund its expansion, on top of a £4.6 million funding round in 2020 led by Mobeus Equity Partners.

Is Parsley Box profitable?

Parsley Box’s revenues have tripled over the past three years, hitting £24.4 million in 2020, with nearly one million meals delivered each month. Like other meal kit providers (such as Gousto and Mindful Chef), and delivery services (such as Deliveroo and Just Eat), Parsley Box has seen increasing profits throughout the Covid-19 pandemic due to consumers turning to online providers for meals.

How does Parsley Box make money?

Parsley Box makes its money delivering high-quality meals to more than 154,000 active customers, averaging roughly 900,000 products delivered per month. Bestsellers include dishes such as cottage pie, lamb hotpot, lasagne, sweet and sour chicken and beef stew, as well as a range of desserts, cakes, wines, spirits and more. All of the meals are delivered in single portions.

What is Parsley Box business model?

Parsely Box’s business model is built around its demographic audience. It is one of the only direct-to-consumer meal kit provider for the over 60s, a rapidly growing demographic – that also happens to be the wealthiest in the UK. According to the Office for National Statistics, by 2029 27% of the population will be over 60.

Parsley Box says it seeks ‘to understand and champion the needs of the life-loving, 60-plus population whose voice has gone too long unheard.’ As such, the meal delivery service is focused on providing convenient, simple and long-life meals straight to the consumer’s door.

New CEO Kevin Dorren has said that this target demographic will insulate Parsley Box from changes in buying habits once people start to return to normal – as most over 60s will spend increasingly more time at home anyway.

Parsley Box has said it hopes the IPO will increase brand-recognition and capitalise on the growing market. As a direct-to-consumer brand, Parsley Box management thought it only right to offer consumers the opportunity to invest in the brand’s growth – following a similar business plan to BrewDog, who will also list in the near future.

Find out more about potential upcoming IPOs in 2021.

Parsley Box has stated its main focus is the UK market, and won’t look to expand globally anytime soon.

Who are Parsley Box competitors?

While there are plenty of direct-to-consumer meal kits – such as HelloFresh, Mindful Chef and Gousto – very few are specifically aimed at the over 60s age group. This is where Parsley Box sees its niche, so unless other bigger brands start to enter the space, the company is currently unfazed by other providers.

Parsley Box states that the more pressing issue for the firm is managing its growing consumer base without compromising on the quality of its produce or speed of delivery.

Who owns Parsley Box?

Parsley Box was founded by husband-and-wife team Gordon and Adrienne MacAuley in 2017, who brought in Mr Dorren as chief executive officer, and Games entrepreneur Chris van der Kuyl as chairman.

Who are the directors of Parsley Box?

Name

Position

Adrienne MacAuley

Co-Founder and Director

Gordon MacAuley

Co-Founder and Director

Kevin Dorren

CEO

Chris van der Kuyl

Chairman

Chris Britton

Non-executive Director

Hazel Cameron

Non-executive Director

Ana Stewart

Non-executive Director

How to trade Parsley Box shares

When Parsley Box lists, you’ll be able to trade its shares in the same way you would any other publicly-traded company on the stock market.

You can trade stocks with City Index using spread bets or CFDs, with spreads from 0.1%. Follow these easy steps to start trading opportunities with UK stocks.

  1. Open a City Index account, or log in if you’re already a customer
  2. Search for the company you want to trade in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade

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