APF Holdings IPO starts today and will run until October 30

The initial public offering (IPO) of APF Holdings (hereinafter APF) shares
starts today at 10 a.m., and any resident of Latvia, Estonia and Lithuania, as
well as institutional investors, can subscribe for the new APF shares until
3:30 p.m. on October 30. The price per share is EUR 6.81 and the minimum
investment is one share. APF is a group of companies comprising one of the
largest poultry and egg production companies in Latvia, SIA Aluksnes Putnu
Ferma, and poultry and rearing company SIA Preilu Putni. 

A total of 1,027,930 new shares are offered for investment, with the option to
increase this number by an additional 103,000 shares if there is strong demand,
bringing the total number of shares offered for investment to 1,130,930 shares.
In the event demand exceeds supply, shares may be allocated to the investor in
a smaller amount than subscribed. Subscriptions will be available through any
commercial bank offering securities transactions, including online banks of all
major Latvian and Baltic banks. 

On October 17, 2023 APF will organize webinars - at 10:00 in Latvian
(registration here) and at 11:30 in English (registration here). The webinars
will be hosted by Jurijs Adamovics, group founder, largest shareholder and
Chairman of the Management Board and Uldis Iltners, the Chairman of the
Supervisory Board, who has solid experience in innovation, sustainable business
and public markets. They will provide and an overview of the company's growth
story, business model, key trends in the market and main terms of the IPO. 

"Latvia has a strong tradition of food production and our IPO gives the
opportunity for residents of Latvia and the Baltics to become co-owners of a
real production company that has already established itself on the market and
has a clear path for future development. We hope to attract as many new
investors as possible, and our new shareholders will not only benefit
economically, but also be proud to see eggs produced by their own company on
shelves in stores later on. With our IPO we also want to promote the culture of
investment in Latvia, which is still in the development stage here," says
Jurijs Adamovics, Chairman of the Board at APF Holdings. 

Signet Bank is the financial advisor for and arranger of the APF IPO, while AS
LHV Pank is the IPO placement agent in Estonia. Eversheds Sutherland Bitans is
advising APF IPO on legal matters. Listing of APF shares on Nasdaq First North
is expected to start on November 3 this year or shortly after that date. 

The IPO investment target is EUR 7 million. After the IPO, APF intends to
significantly expand its scale of operations and increase egg production by 60
percent by 2025 and more than double its revenue, from around EUR 11 million in
2022 to EUR 25 million in 2025. With the contribution of IPO investors and
further bank financing, the plan is to build two more laying hen houses in
addition to the existing three and to expand the capacity of auxiliary
infrastructure. This will allow to increase egg output from 115 million per
year to 180 million per year and to increase the number of laying hens to
665,000. In addition, APF plans to launch an egg processing operation, adding
new production equipment to its existing facilities in order to create modern
and healthy egg products. 

Joint-stock company APF Holdings was founded in 2017 by Jurijs Adamovics to
take over and modernize a 60-year-old poultry facility based in Aluksne. Today,
APF Holdings comprises a group of companies involved in poultry farming,
chicken egg production and marketing, as well as production of gas and organic
fertilizers as part of its poultry business. The group is made up of SIA
Aluksnes Putnu Ferma (poultry farming and egg production), SIA APF Trading
(wholesale trade in chicken eggs), SIA Oluksne (poultry farming and egg
production services), SIA APF Energy (production of gas and organic
fertilizers), and SIA Preilu Putni (poultry farming, rearing farm). Jurijs
Adamovics is the largest shareholder in APF Holdings. 



Disclaimer: This announcement is an unpaid marketing communication under the
Prospectus Regulation and does not constitute investment advice or an offer.
The information contained herein contains statements about APF Holdings'
initial public offering of its shares. Each investment decision should be made
on the basis of the Prospectus approved by the Bank of Latvia. The approved
Prospectus is available on the website of the Bank of Latvia
(https://bank.lv/). 



Further information:
Darta Priedniece
MM&A|Hill + Knowlton Strategies
M: + 371 26 813 125, E: [e-mail]