Poultry company SIA “Alūksnes putnu ferma” has received the decision of the Rural Support Service (LAD) on the approval of the project application and the allocation of funding in the amount of two million euros for the financing of development plans, representatives of the company informed LETA agency.
The company states that if the conditions for receiving the support are met, “Alūksnes putnu ferma” will receive two million euros for the barn construction project.
At the same time, the company notes that although the LAD decision increases the value of AS “APF Holdings” group, which also includes “Alūksnes putnu ferma”, the company’s board has decided not to change the price of the share offered in the initial public offering (IPO), and it will remain at 6.81 euros per share.
At the same time, the representatives of “APF Holding” add that the financing of the Russian Federation will significantly improve the economic rationale for the implementation of the investment plans of “APF Holdings”.
It has already been reported that the initial public offering of “APF Holdings” shares will take place until October 30. A total of 1,027,930 shares are being offered with the right to increase this number by another 103,000 additional shares in case of strong demand. It is planned that the shares of “APF Holdings” will be listed on the “First North” alternative market of the “Nasdaq Riga” stock exchange.
The purpose of stock listing is to attract investments for increasing egg production capacity, expanding 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 Adamović.
Photo: Cynthia Zanderson/LETA
2023-10-23 14:30:27
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