Annie's Inc. (NYSE: BNNY) surges in first-day trading: It was expected to be among the best performers of the nine other companies going public this week - and it delivered.
The organic food producer ended its first trading day up 87%. The company offered 5 million shares at $19 a share.
"It's definitely the hottest deal of the week," Scott Sweet, senior managing partner at IPO Boutique, told Reuters. "They have only a few products but they've executed very well and have high brand awareness."
Known for its organic and gluten-free foods, Annie's hopes to capitalize on Americans' increasing trend toward healthy eating.
The growing popularity of more nutrition-conscious grocery shopping is illustrated in Whole Foods Market Inc. (Nasdaq: WFM) 844% share price rise in just over three years. Same-store sales at Whole Foods have steadily risen 8% over the past two years.
Annie's sales for the 2011 fiscal year that ended March 31 were $118 million, 23% higher than 2010. Profit increased 233% to $20.2 million from the year before.
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