Grove IPO or SPAC? Here's how to buy the sustainable company's stock

Highlights 

  • Established in 2012, Grove Collaborative was started to address environmental issues.
  • Grove Collaborative will likely receive US$ 435 million in gross proceeds, and it could help the company to expand its business operations.
  • According to the official statement, the company will likely trade under the stock symbol GROV. 

The California-based sustainable consumer products company Grove Collaborative is set to go public in the US equity markets. Grove Collaborative will merge with a blank-check company instead of a traditional initial public offering (IPO). 

Established in 2012, Grove Collaborative was started to address environmental issues and it makes sustainable products for personal care, household cleaning, and products for children and pets. 

The maker of the sustainable products is looking to go public through a merger with Virgin Group Acquisition Corp II, a special purpose acquisition company (SPAC) backed by billionaire Sir Richard Branson. 

Grove SPAC merger: Key details

Notably, the deal could value the combined entity at around US$ 1.5 billion. 

In addition, Grove Collaborative will likely receive US$ 435 million in gross proceeds, and it could help the company to expand its business operations and transform the consumer products industry to work towards a better environment. 

How to buy Grove stock?

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Grove Collaborative will trade on the New York Stock Exchange (NYSE). According to the official statement, the company will likely trade under the stock symbol GROV.  

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Once the company gets listed in the stock market, investors will be able to get hold of the GROV stock like they buy regular shares through applications or websites of brokerage companies. 

Notably, Grove's shareholders will roll their equity holdings into the combined entity. 

Bottom line

Over the years, Grove has emerged as one of the leading companies making sustainable consumer products. The company gets more than 1.5 million active customers through its direct platform, and millions of its products are sold through retail stores. 

Grove expects revenue of US$ 385 million in 2021 and a gross margin of 50 per cent. In addition, the company expects to increase its revenue to US$ 600 million and break-even by 2024.

The company is the world's first plastic neutral retailer, and it aims to become a 100 per cent plastic-free company by 2025. 

As the awareness around environment and sustainability increases, Grove Collaborative could attract more customers in the future and expand its presence globally.

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