International investment research company Enlight Research, that is regularly engaged in evaluating the shares of companies listed on the Baltic bourse, has valued the shares of JSC APF Holdings (hereinafter – APF) at EUR 51 million, while the value of one share is EUR 8.92. This valuation exceeds the share price set in APF Initial Public Offering – EUR 6.81.
“We hope that this valuation will provide IPO investors with a clear vision on benefits from expansion of operations planned by APF. The Baltic egg production market is an oligopoly with high obstacles for any new market player. APF Holdings has overcome these obstacles, showing a profit and becoming one of the four leading egg producers in the Baltics. The next development step is to increase capacity and gain benefit from lower costs that will be ensured by higher manufacturing volumes. It respectively will improve the profit margin. If everything goes as planned, the value created for shareholders can be significant, and it has been reflected in the evaluation, said Mattias Wallander, the founder of Enlight Research.
Enlight Research in its valuation has used the widely acceopted discounted cash flow valuation method that estimates the company’s future cash flow. In addition, Enlight Research compared APF with valuations of other listed companies in the sector.
About Enlight Research
Enlight Research helps issuers to communicate their investment story and provides investors with expertise for decision making. The company’s vision is to create fair, transparent investment environment where high-quality research is available for everyone. The company’s achievements are reflected in the fact that most of the listed companies in the Baltics have joined Enlight Research platform, and the number of the platform readers has increased from hundreds to thousands.
Full version of the research by Enlight Research is available at https://research.enlightresearch.net/ViewReport.action?&resLibId=89060&forwardAction=ViewReport
As reported, according to the APF IPO Prospectus, the IPO share price will be EUR 6.81 and the subscription period has been set from October 13 until October 30. In total, 1,027,930 new shares will be offered for investments with the rights to increase this number with 103,000 additional shares. The minimum required investment is one share. The shares will be included in the Nasdaq Riga alternative market First North and the listing will be launched on November 3.
The goal of IPO is to raise EUR 7 million. According to IPO, APF plans to significantly expand its operations and by 2025 increase egg production by 60% and more than double its revenue from about EUR 11 million in 2022 up to EUR 25 million in 2025. With the help of IPO investors and further financing from the banks, APF plans to build two more hen houses in the addition to the current three and expand the capacity of the production support infrastructure. This will allow an increase in egg production from 115 million per year to 180 million per year and an increase in the number of laying hens to 665,000. In addition, APF plans to start egg processing with new equipment in order to create modern and healthy egg products.
APF Holdings is being advised by Latvia’s leading investment bank Signet Bank on financial matters and by Eversheds Sutherland Bitans on legal matters in connection with the planned IPO. Joint-stock company APF Holdings was founded in 2017 by Jurijs Adamovics to take over and modernize a 60-year-old poultry facility based in Aluksne. 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 Aluksnes 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 Preilu Putni (poultry farming, rearing farm). Jurijs Adamovics is the largest shareholder in APF Holdings.
Disclaimer: Enlight Research OU report has been prepared at the commission of JSC APF Holdings. The payment for the report has been set in advance and does not depend on the contents of the report. 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 is published on the website of the Bank of Latvia (https://bank.lv/).