March 16, 2015 / 10:27 PM / 4 years ago

UPDATE 1-Continental Grain's Wayne Farms files for IPO

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March 16 (Reuters) - Wayne Farms Inc, the sixth-largest poultry producer in the United States, filed with U.S. regulators in an initial public offering of common stock.

The company is the subsidiary of Continental Grain Co, among the largest privately held U.S. corporations. Continental Chief Executive Paul Fribourg said in November that the company might sell a stake in its poultry business.

Wayne Farms is selling all the shares in the offering, the company told the U.S. Securities and Exchange Commission in a preliminary prospectus on Monday. (1.usa.gov/1xsRMPo)

The filing, which did not reveal how many shares the company planned to sell or their expected price, included a nominal fundraising target of about $100 million.

Citigroup, J.P. Morgan and BMO Capital Markets are underwriting the IPO. Wayne said it will list its stock under the symbol “WNFM,” but did not specify the exchange.

Wayne Farms counts Nestle SA, Costco Wholesale Corp and Chick-fil-A, the fast food chain known for its chicken sandwiches, among its clients.

Net income of Wayne Farm LLC, a subsidiary of Wayne Farms Inc, rose about 74 percent to $174.31 million for the nine months ended Dec. 27, from $100.36 million, a year earlier. Total net sales increased 6.6 percent to $1.70 billion.

Continental Grain, founded as a grain merchant by Simon Fribourg two centuries ago in Belgium, is now a multi-national investment firm with a history of partnerships and private deals.

The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different. (Reporting by Avik Das in Bengaluru; Editing by Joyjeet Das)

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