The Financial Supervision Commission (FSC) approved poultry producer Gradus’ IPO prospectus, the FSC announced in a filing. The IPO is expected in mid-June. The Company seeks to raise more than BGN 100 million by placing a total of 55.6 million shares, 50% of which existing and 50% new shares. If successful, this will be the largest IPO since 2007, First Investment Bank’s (5F4 BU) BGN 107 million IPO holding the leading place. Gradus CEO Angel Angelov said to investor.bg that management expects the market to evaluate the company in the range of BGN 400 million. – BGN 520 million, commenting that this is what they find a realistic assessment.

Gradus will expand production 30%

The Company will use the proceeds from the listing for the implementation of its 2020 strategy. The latter targets introduction of new poultry products, 20-30% increase in hatching eggs business production, diversification of pork products portfolio through the acquisition of pork brands and recipes, as well as entering into the HoReCa sector.

Dividend investors will be happy

Poultry producer Gradus to propose 90% dividend payout ratio in case of successful IPO, the Company’s CEO Angel Angelov said in announcement to the media in mid-May.

In FY2017, the Company posted consolidated revenues of BGN 245.8 million and a net profit of BGN 39.8 million. Taking into account the latter, Gradus’ expected P/E multiple will be in the range of 10x to 13x.

About Gradus

Gradus is one of the biggest vertically integrated poultry processing groups in Bulgaria consolidated under this brandname. It also holds the second market position in egg production in Europe. The group includes a feed mill, hatcheries, parent breeding and broiler fattening farms as well as meet processing facilities. Additionally, it includes a pork meat products processing operations under the “I eat” brand (Az Iam). It is a 26-years old family business founded and currently owned by the Angelov brothers Ivan Angelov ad Luka Angelov.

Gradus website