The initial public offering (IPO) of APF Holdings (hereinafter APF) shares starts today at 10 a.m., and any resident of Latvia, Estonia and Lithuania, as well as institutional investors, can subscribe for the new APF shares until 3:30 p.m. on October 30. The price per share is EUR 6.81 and the minimum investment is one share. APF is a group of companies comprising one of the largest poultry and egg production companies in Latvia, SIA Alūksnes Putnu Ferma, and poultry and rearing company SIA Preiļu Putni.
A total of 1,027,930 new shares are offered for investment, with the option to increase this number by an additional 103,000 shares if there is strong demand, bringing the total number of shares offered for investment to 1,130,930 shares. In the event demand exceeds supply, shares may be allocated to the investor in a smaller amount than subscribed. Subscriptions will be available through any commercial bank offering securities transactions, including online banks of all major Latvian and Baltic banks.
“Latvia has a strong tradition of food production and our IPO gives the opportunity for residents of Latvia and the Baltics to become co-owners of a real production company that has already established itself on the market and has a clear path for future development. We hope to attract as many new investors as possible, and our new shareholders will not only benefit economically, but also be proud to see eggs produced by their own company on shelves in stores later on. With our IPO we also want to promote the culture of investment in Latvia, which is still in the development stage here,” says Jurijs Adamovičs, Chairman of the Board at APF Holdings.
Signet Bank is the financial advisor for and arranger of the APF IPO, while AS LHV Pank is the IPO placement agent in Estonia. Eversheds Sutherland Bitāns is advising APF IPO on legal matters. 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.
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 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/).