Better Being Co. (BBCO) has revealed the terms for its IPO. The company plans to raise about $200 million in the offering. Is BBCO IPO stock a good buy for investors? What can investors expect following the IPO?
Founded in 1993, Better Being manufactures and sells nutritional supplements and personal care products under the Solaray, KAL, and other brands.
Better Being's IPO date and price
Better Being hasn’t officially disclosed its IPO date yet, but various reports indicate that it could come as early as Aug. 4. Better Being plans to offer 12.5 million shares at $15–$17 per share. The net proceeds will be used to repay debts and for general corporate purposes.
Goldman Sachs, Credit Suisse, Jefferies, Deutsche Bank, Piper Sandler, and Guggenheim Securities are the underwriters for the IPO. The underwriters have the option to purchase an additional 1.9 million shares at the IPO price.
Better Being isn’t profitable.
Better Being reported a net loss of $32.7 million in fiscal 2020 (ended September 30, 2020) compared to $4.9 million in fiscal 2019. Its revenue rose 15.1 percent YoY to $319.3 million in fiscal 2020 and 16 percent YoY to $178.6 million in the six months ended March 31, 2021. As of March 31, 2021, the company had $454.6 million in total liabilities and $8.8 million in cash and cash equivalents.
Better Being's valuation
The IPO will value Better Being at $843 million, and its terms put the company’s fiscal 2020 price-to-sales multiple at 2.6x. Considering that peers Herbalife Nutrition and Nu Skin Enterprises are trading at NTM EV-to-sales multiples of 1.2x and 1.0x, respectively, Better Being stock looks overvalued.
Better Being’s competitor The Bountiful Company, which manufactures Nature's Bounty products, filed for an IPO in April 2021 before revealing that its key brands would be bought by Nestle for $5.75 billion.
Better Being’s stock price and ticker symbol
Better Being stock will trade under the ticker symbol “BBCO.” The stock will be listed on the NYSE, and the company is offering IPO shares at $15–$17.
Better Being’s stock forecast
The outlook for Better Being stock looks promising. The global market for dietary supplements, valued at an estimated $140.3 billion in 2020, is set to reach $272.4 billion in value by 2028, according to a 2021 market research report by Grand View Research. The significant growth is mainly because of increased consumer awareness about personal health practices.
Better Being IPO stock is a good buy, but not at this price
Better Being manufactures and sells several vitamins, supplements, body care, and other consumer products. The company sells its products online, direct to retailers, and through distributors. In fiscal 2020, nearly 29 percent of its sales were generated outside of the U.S., of which 61 percent were generated online.
The U.S. and European markets witnessed higher supplement adoption amid the COVID-19 pandemic, as customers sought immunity-boosting products. Although Better Being is positioned in a growing market and has performed well amid the COVID-19 pandemic, the IPO looks expensive.
How to buy Better Being IPO stock
Better Being shares can be bought using a traditional or online discount broker like Robinhood.