JSC APF Holdings (hereinafter referred to as APF), currently undergoing an Initial Public Offering (IPO), will be listed on the stock exchange under the stock symbol EGG. The symbol has been chosen to send a clear message to investors about the company's core business - egg production. APF's IPO will close on Monday, October 30, and investors are invited to submit subscription orders for the shares to their online banks by 12:00 in order to allow the banks to process them in time.
“The new symbol EGG is a departure from the usual stock exchange practice of using the letters of company names in stock symbols, but APF's approach has several precedents on foreign stock exchanges. With our approach, we want to make it clear that our company creates practical value and that by investing in our shares, investors acquire a stake in a strong food company. Perhaps our approach will start a new tradition on the stock market,” says Jurijs Adamovičs, Chairman of the Board of JSC APF Holdings.
APF is a group of companies comprising one of the largest poultry farming and egg producing enterprises in Latvia – JSC Alūksnes putnu ferma – and poultry farming and chicken breeding company JSC Preiļu putni. As reported earlier, APF's Initial Public Offering (IPO) is currently underway and will run until October 30. A total of 1 027 930 new shares are being offered for IPO investment, with an option to increase their number by an additional 103 000 shares in case of strong demand, bringing the total number of shares on offer to 1 130 930.
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.
Signet Bank is the financial advisor and arranger of APF's IPO, while JSC LHV Pank is the IPO's sales agent in Estonia. Eversheds Sutherland Bitans law firm is advising APF on the IPO's legal matters. The listing of APF shares on the Nasdaq alternative market First North is expected to start on November 3 of this year or shortly after that date.
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 includes announcements regarding the public offering of shares in JSC APF Holdings. 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/).