Meal kit company My Food Bag is eyeing an IPO worth $450 million which will see it launch on the NZX and ASX in March, according to the NZ Herald.

The business will offer up to 185 million shares priced at $1.85 each.

The money raised will go to repaying bank debts, as well as transaction costs, and will focus on helping the business pursue growth plans.

“Our growth will be underpinned by continued leadership in the meal kit market and expanding our food-based offerings to align with consumer trends,” My Food Bag chairman Tony Carter said.

More than 10,000 customers and team members have already registered for a priority allocation in the IPO, as well as a number of fund managers.

However, the business noted that the meal-kit market is beginning to get crowded, that it expect competition to continue growing, and that it may need to discount its product or further invest in product development to maintain market share in future.

According to the NZ Herald, investment strategist Ed Glennie said the difference between My Food Bag and many other operators is that My Food Bag is already profitable, and would likely be one of the only operators in the space able to pay dividends to investors.

The IPO is expected to launch on February 19, with My Food Bag planning to list on March 5.