Isaac Langleben and Jacqueline Prehogan, two of the founders of Open Farm natural pet food.JENNIFER ROBERTS/The Globe and Mail
Open Farm, a Toronto-based pet food company that has been growing rapidly over the past 12 years, is delaying its initial public offering until the fall, according to sources, allowing investors to make sense of the choppy markets and to monitor some uneven trading performances from consumer-driven IPOs.
Open Farm made its name producing pet food that is ethically and sustainably sourced as the pet sector boomed. The company has attracted minority investments from top tier American private equity firms, including General Atlantic.
Open Farm hired bankers for its IPO with hopes of raising between $300-million and $400-million and launching as early as June, but the company decided this month to push it to the fall, according to three sources.
The Globe and Mail is not naming its sources because they are not authorized to speak publicly about the deal.
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Early feedback from institutional investors suggested they wanted some time to digest the choppy markets, and to also see how consumer spending shakes out. Recent consumer-driven IPOs in the United States from companies such as Suja Life Inc., which makes organic cold-pressed juices, and Once Upon A Farm, which makes “clean” baby food and kids snacks, have had volatile share price performances since they listed in May and February respectively.
Isaac Langleben, Open Farm’s chief executive officer, said in an e-mailed statement to The Globe that the company remains excited about going public. They’ve filed confidentially for the IPO and have enjoyed getting to know potential investors and analysts.
“The conversations have been encouraging, and we’ll move forward when the timing is right for our business,” he said. The company also noted it has had double-digit revenue growth and margins over the past year.
In Canada, the recent performance of Pet Valu Holdings Ltd., which operates pet stores across the country, has also weighed on investors. Although it is not a directly comparable business to Open Farm, it is in the same broad sector and Pet Valu’s shares are down 46 per cent over the past year because consumers have pulled back on spending.
Canada’s IPO market has roared back to life over the past three months, with more than $2-billion worth of new shares sold since March. Most recently, Apotex Health Corp., Canada’s largest drug manufacturer, increased the size of its offering to $1.3-billion on the back of strong investor demand.
However, trading performance once the deals are listed has been uneven. Apotex, which listed at $24 a share, is currently trading at $31.92, up 33 per cent. But shares of Lumina Metals Corp., which raised $406-million in April and whose deal was upsized because of strong investor demand, are down 19 per cent to $10.07 since listing.
Investors are also deciding what to make of recent market jitters, with a tech sector selloff weighing on major U.S. exchanges. The tech-heavy Nasdaq Composite Index is down 5.9 per cent from its record high in early June.
But the Nasdaq, the S&P 500 and the S&P/TSX Composite Index are all up for the year, and the IPO market in Canada is still open for new offerings. On Wednesday, Canadian gold and copper explorer Phoenix Metals Corp. launched a $35-million IPO in Toronto.
Open Farm was founded in 2014 by Jacqueline Prehogan, Mr. Langleben and Derek Beigleman and initially focused on three products, but grew to offer products that ranged from dry dog food to fresh meals and supplements.
In January, 2021, Open Farm raised $80-million in growth equity led by General Atlantic, which was the U.S. private equity firm’s first foray into the pet sector. At the time, U.S. firm Encore Consumer Capital was already a minority investor.
General Atlantic declined to comment for this story. Encore did not return a request for comment.
Open Farm built its reputation selling in neighbourhood pet stores and has expanded into bigger box names. In June, it started supplying 1,700 PetSmart food stores in the U.S. and Canada.
Growth in the pet industry has exploded over the past decade, with pet owners willing to spend heavily on premium products. Against this backdrop, Pet Valu went public in Canada in 2021 at $20 a share and the stock had nearly doubled by September, 2025.
Lately, however, Pet Valu has warned about a pullback in consumer spending. When the company reported first quarter earnings in May, CEO Greg Ramier told analysts that growth in the pet industry has been “shaped by heightened level of value-seeking behaviour, driven by sustained inflationary pressure on household budgets and, in particular, the recent surge in fuel prices.”
Pet Valu’s shares are down 46 per cent over the past year and closed Wednesday at $17.70, below their IPO price.