“Latvian group “APF Holdings” plans IPO on Baltic Stock Exchange to combat struggling Riga Stock Exchange”

Group of companies “APF Holdings”, which consists of “Alūksnes putnu ferma” and poultry breeding and young bird breeding companies, announced this week that it plans to launch on the Baltic Stock Exchange in autumn. Experts assess the company’s prospects positively, noting that the small size of the stock exchanges allows any newcomer to stand out.

Despite the fact that there are many successful, growing and innovative companies in Latvia, only 14 companies are listed on the Riga Stock Exchange. In addition, only 5 shares of companies have real, relatively active trading. Concerns about this have arisen not only in the financial environment, which believes that the Riga Stock Exchange is dead, but also in the government. Recently, Minister of Finance Arvils Ašeradens (JV), while presenting the situation in the Latvian capital market, pointed out that Latvia lags behind not only the European average, but also the neighboring countries and we are at the “sub-Saharan level.”

Therefore, the announcement of “APF Holdings” about the plans to make an initial share offering (IPO) in autumn has also aroused interest.

“Taking into account the weak development of the Latvian capital market, one can only be happy about the appearance of new issuers,” comments Kārlis Purgailis, chairman of the board of “Citadele’s” subsidiary company “CBL Asset Management”, noting that currently the capital market as a means of attracting financing is becoming more and more attractive due to the high borrowing costs and due to uncertainty in macroeconomic conditions.