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Gradus hatches plans for a BGN 100mn IPO
Posted on Friday, 09 February 2018 14:40
Gradus is set to spring an initial public offering (IPO) on Sofia’s bourse later this year that Zephyr, the M&A database published by Bureau van Dijk, shows would be one of the largest in Bulgaria for more than a decade.
The country’s leading poultry producer is expected to submit paperwork with the financial regulator in early April for a first-time share sale worth more than BGN 100.00 million (USD 62.55 million).
First Financial Brokerage House is manager of the offering, which will finance the expansion of existing business lines and the diversification into new areas.
In a statement, Gradus said the IPO “will be the largest in the country after the financial crisis” of 2007-08 and it should provide investors exposure to the food industry, which is “one of the fastest-growing sectors”.
The listing of Luca and Ivan Angelovi’s company will be a real test of the appetite for opportunities in the Bulgarian market in almost a decade.
At a target of BGN 100.00 million, it far outweighs sums asked by Sirma Grup in 2015 (BGN 30.51 million) or 235 Holdings, which announced plans to raise BGN 19.90 million last month.
Gradus is a full-cycle poultry company offering more than 150 different products that include both fresh and frozen items, and sausages.
The group owns a feed mill in Nova Zagora; stock farms that grow parent flocks (cocks and hens); a hatchery in Bolyarsko, Yambol municipality; fattening farms; and processing plants.
According to the weekly business newspaper Capital, Gradus is the market leader in the chicken category with a 35.0 per cent share and, while the majority of demand is domestic, 30.0 per cent of its production is exported.
The company posted profit of BGN 34.00 million on revenue of more than BGN 200.00 million last year.
Capital reported almost BGN 150.00 million has been invested in production in the last ten years, and the last public fundraiser should finance the breeding egg business as well as developing a pork sausage line.
© Zephus Ltd