The maturity of the bonds is four years.
“APF Holdings” indicates that “CVI” and “APF Holdings” have also entered into an agreement in the bond purchase transaction, which stipulates that “CVI” expresses a preliminary commitment to allocate an additional five million euros to “APF Holdings” on the condition that the company fulfills predetermined financial conditions.
The company states that this set of transactions between the two companies provided “APF Holdings” with the necessary financing to fully implement the investment program and refinance the existing portfolio of liabilities.
Company representatives also note that APF Holdings will use the funds obtained from the bond issue to implement the company’s growth plans. Among them, for the construction of two new laying hen sheds, the introduction of new egg product processing production lines, and the construction of laid.
“A successful bond issue allows us to implement the plans of “APF Holdings” and to increase the production capacity of “APF Holdings” by approximately 60% in the next few years,” says Jurijs Adamovičs, chairman of the board of “APF Holdings”.
He points out that there is currently a growing demand in the market of eggs and egg products both in Latvia and in Europe for eggs outside of cages, and “APF Holdings” wants to rapidly implement its development plan in order to take advantage of the specific market trend.
Representatives of “APF Holdings” inform that “CVI” is an independent Polish investment company that manages 11 different funds with total assets of 750 million euros. “CVI” has investments in nine Central and Eastern European countries.
It has already been announced that in the initial public offering (IPO) of “APF Holdings” the demand for shares exceeded the supply by 7%.
In general, in the initial public offering of shares, investor orders for the purchase of shares were received in the amount of EUR 5,624,204, thus the demand for shares exceeded the supply by EUR 371,482.
The purpose of the “First North” share listing on the alternative market of “Nasdaq Riga” was to attract investments for the increase of egg production capacity, expansion of operations in Latvia and expansion in export markets.
After the initial public offering, the growth goals of “APF Holdings” envisage significantly expanding the scale of operations of the “APF Holdings” group, including increasing the amount of eggs produced by 60% by 2025 and more than doubling revenues, increasing them from approximately 11 million euros in 2022 up to 25 million in 2025.
Also, with the investment of investors and further bank financing, it is planned to build two more in addition to the existing three laying hen sheds and to expand the capacity of the production support infrastructure. Thus, the amount of eggs produced would increase from 115 million a year to 180 million, and the number of laying hens would increase to 665,000, representatives of “APF Holdings” note.
“APF Holdings” plans to start processing eggs by purchasing new production equipment.
Of the total required 16.7 million euros, seven million euros are planned to be raised from the public offer, while up to 11 million euros are planned to be raised from bank financing.
The turnover of “APF Holdings” group increased 2.9 times last year and reached 11.23 million euros, while the group’s profit increased 2.5 times and was 331,047 euros.
The company “APF Holdings” was registered in 2017, and its share capital is 4.7 million euros. The group of companies includes the poultry and egg production company “Alūksnes putnu ferma”, the wholesale company SIA “APF Trading”, the poultry and egg production service provider SIA “Oluksne”, the gas and organic fertilizer producer SIA “APF Energy” and the poultry and young bird breeding company SIA “Birds of pretzels”.
The largest shareholder of “APF Holdings” is Jurijs Adamovičs.
2024-02-22 08:52:37
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