Joint-stock company APF Holdings (hereinafter – APF), a group of companies that includes one of the largest poultry and egg production companies in Latvia, SIA Alūksnes Putnu Ferma, and poultry and rearing company SIA Preiļu Putni, aims to raise EUR 7 million in initial public offering (IPO) set for the fall this year to implement its development plans.
Following the IPO, Alūksnes Putnu Ferma Group’s scale of operations will be expanded significantly and egg production will be raised 60% by 2025, while revenues will increase more than twofold, from around EUR 11 million in 2022 to EUR 25 million in 2025.
With the contribution of IPO investors and further bank financing, the Group will build two more poultry houses in addition to the existing three houses and expand capacity of the production support infrastructure. As a result, annual egg production will increase from 115 million eggs to 180 million eggs, while the number of laying hens will grow to 665,000 hens. Furthermore, APF is also planning to launch egg processing, setting up new production facilities that will make modern and healthy egg products.
“APF and the Latvian poultry industry are currently in an advantageous market position: both in Latvia and in the entire Europe, a significant change in consumer habits and supermarket marketing policies is anticipated in the coming years, i.e. caged eggs will be replaced by barn eggs and this change will mean a significant shortage of barn eggs, both here in Latvia and in the Baltics and elsewhere in Europe. It has to be said that caged eggs make up more than 70% of all eggs produced by the largest European egg exporters, Spain and Poland, which is unsustainable. APF will use this market opportunity and, following the IPO, around 90% of all eggs produced by APF will be barn eggs. This is a growth opportunity for the industry and for our investors," says Jurijs Adamovičs, Chairman of the Board at AS APF Holdings.
As reported, APF plans to go public on the stock exchange this coming fall through an Initial Public Offering (IPO) of its shares. The company’s shares are to be listed on Nasdaq Riga’s alternative market First North.
Joint-stock company APF Holdings was founded in 2017 by Jurijs Adamovičs to take over and modernize a 60-year-old poultry facility based in Alūksne. Today, APF Holdings comprises a group of companies involved in poultry farming, chicken egg production and marketing, as well as production of gas and organic fertilizers as part of its poultry business. The group is made up of SIA Alūksnes Putnu Ferma (poultry farming and egg production), SIA APF Trading (wholesale trade in chicken eggs), SIA Oluksne (poultry farming and egg production services), SIA APF Energy (production of gas and organic fertilizers), and SIA Preiļu Putni (poultry farming, rearing farm). Jurijs Adamovičs is the largest shareholder in APF Holdings.
Disclaimer: This announcement constitutes unpaid marketing communication under the Prospectus Regulation and does not constitute investment advice or offer. The information contained herein contains general forward-looking statements about AS APF Holdings’ intention to make an initial public offering of its shares. Each investment decision should be made on the basis of a Prospectus approved by the Bank of Latvia. The approved Prospectus will be published on the website of the Bank of Latvia (https://bank.lv/) as soon as it becomes available.