Riga, Latvia - APF Holdings (hereafter referred to as APF), a prominent player in the Latvian agribusiness sector and the third-largest egg producer in the Baltic region, is pleased to announce the commencement of a new procurement process for the construction of two state-of-the-art hen houses. This strategic move aligns with the company's Initial Public Offering (IPO) objectives.
This decision underlines APF Holdings' unwavering commitment to optimizing resource allocation and cost management. Capitalizing on a decrease in energy costs and service expenses, the company is strategically reassessing project expenditures and exploring channels for improved cost-efficiency.
Hermanis Dovgijs, Member of the Management Board at APF Holdings, emphasized the significance of this transition, stating, "The significant €2 million support from Latvian Rural Support Services has provided us with a strategic advantage. Within the first week of announcing the procurement process, we have observed substantial interest from leading construction firms. With this additional financial backing and the current reduction in energy costs, we are not only enhancing operational efficiency and competitiveness but also fostering opportunities for wider participation from prospective applicants keen to contribute to our project. This move holds particular advantages for our investors, allowing us to initiate a fresh procurement process, attract new candidates, and anticipate cost reductions compared to our initial budget projections."
The pricing survey and procurement process requirements for the construction of the 4th and 5th new hen houses, along with the acquisition of layers housing equipment, were officially published on November 17th (https://pvs.iub.gov.lv/show/761686), and will remain in effect until January 10, 2024. This timeline is in line with our goal to select the construction contractor by the first quarter of 2024, finalize the agreement, and commence construction of the 4th and 5th hen houses in April 2024.
"As we embark on this dynamic phase, we eagerly look forward to collaborating with suppliers who share our vision and values. Together, we aspire to make a significant impact on our industry while upholding the highest standards in poultry farming," added Jurijs Adamovics, Chairman of the Board at APF Holdings.
APF Holdings (NASDAQ: EGG) is a dynamic group of companies engaged in poultry farming, chicken egg production and trading, as well as gas and organic fertilizer production related to poultry farming processes. Our portfolio includes SIA Alūksnes putnu ferma (poultry farming and egg production), SIA APF Trading (wholesale trade in chicken eggs), SIA Oluksne (providing poultry farming and egg production services), SIA APF Energy (gas and organic fertilizer production), and SIA Preiļu putni (poultry farming and young chicken rearing). Founded in 2017, APF Holdings has become a leading player in the Baltic region's poultry and egg industry.