JSC APF Holdings (hereinafter referred to as APF), a group of companies comprising one of the largest poultry farming and egg producing enterprises in Latvia LLC Alūksnes putnu ferma and poultry farming and breeding company LLC Preiļu putni, has received the Bank of Latvia’s approval for the Prospectus of an initial public offering (hereinafter referred to as IPO) of APF shares, in which the IPO share price has been set at EUR 6.81 and the share subscription period from October 13 to 30.
A total of 1 027 930 new shares will be offered for investment, with the option to increase this number by an additional 103 000 shares. The minimum investment is one share. In the event demand exceeds supply, shares may be allocated to the investor in a smaller amount than subscribed.
“Significantly, the APF IPO launch date coincides with World Egg Day, as we want to underline that our IPO is based on the production of a food staple that people need in their everyday lives and that provides an affordable and sustainable source of protein. Food will always be needed, and our IPO offers the opportunity to become shareholders in practical, tangible production with a significant growth potential. We want to attract as many institutional and retail investors as possible and have therefore set a share price that everyone in Latvia and the Baltics will be able to afford and that will give the new investors the opportunity to participate in the company's growth story,” says Jurijs Adamovičs, Chairman of the Board of LLC APF Holdings.
In the public offering, APF shares will be made available to Investors in Latvia, Estonia and Lithuania. The IPO will open for subscription on October 13 at 10:00 and close on October 30 at 16:30. Subscriptions will be available through any commercial bank offering securities transactions, including online services of all major Latvian and Baltic banks. Listing of APF shares on Nasdaq First North is expected to start on November 3 this year or shortly after that date.
The IPO investment target is EUR 7 million. After the IPO, APF intends to significantly expand its scale of operations and increase egg production by 60 percent by 2025 and more than double its revenue, from around EUR 11 million in 2022 to EUR 25 million in 2025. With the contribution of IPO investors and further bank financing, the plan is to build two more laying hen houses in addition to the existing three and to expand the capacity of auxiliary infrastructure. This will allow to increase egg output from 115 million per year to 180 million per year and to increase the number of laying hens to 665,000. In addition, APF plans to launch an egg processing operation, adding new production equipment to its existing facilities in order to create modern and healthy egg products.
In connection with the planned IPO, APF is being advised on financial matters by Signet Bank, a leading Latvian investment bank, and on legal matters by Eversheds Sutherland Bitans law firm.
JSC APF Holdings was founded in 2017 by Jurijs Adamovičs in order to take over and modernize a 60-year-old poultry factory based in Alūksne. Today, JSC APF Holdings comprises a group of companies involved in poultry farming, production and marketing of chicken eggs, as well as production of gas and organic fertilizers related to the poultry production process. The group of companies includes LLC Alūksnes putnu ferma (poultry farming and egg production), LLC APF Trading (chicken egg wholesale), LLC Oluksne (poultry farming and egg production services), LLC APF Energy (gas and organic fertilizer production) and LLC Preiļu putni (poultry farming, breeding of young birds). Jurijs Adamovičs is the key shareholder of APF Holdings.
Disclaimer: This announcement is an unpaid marketing communication under the Prospectus Regulation and does not constitute investment advice or an offer. The information contained herein contains statements about APF Holdings' initial public offering of its shares. Each investment decision should be made on the basis of the Prospectus approved by the Bank of Latvia. The approved Prospectus is available on the website of the Bank of Latvia (https://bank.lv/).