Wine producer Purcari will launch an Initial Public Offering for a maximum of 49 percent of existing shares, which will be followed by the company being listed on the Bucharest Stock Exchange, according to profit.ro.
Purcari Wineries operates more than 1,000 acres of vineyards and four production platforms in Romania and Moldova, being the most awarded wine producer in Central and Eastern Europe at Decanter London 2015-2016. The company owns two out of the five premium brands in Romania, with a share of 26 percent of the segment.
On account of the rise in consumption in CEE and especially in Romania, Purcari had an average revenue growth rate of 34 percent between 2014 and 2016, with yearly growth rates of 55 percent in Romania, 49 percent in Poland, 44 percent in Moldova, and 15 percent in the Czech Republic and Slovakia. The high level of growth was maintained throughout the first 9 months of 2017, in which the company grew by 35 percent per year, with a 69 percent growth in Romania compared to the same period of 2016.
The company is showing investors that it has a reduced expenditure base and an abundant offer of high-quality grapes, which leads to an extremely profitable business.
Purcari is led by Victor Bostan, an oenologist with over 35 years of experience in the wine industry, along with Horizon Capital and International Finance Corporation (IFC), part of the World Bank Group.
In their presentation to investors, representatives of Purcari Wineries highlighted the essential aspects of the economic environment in which the company operates. They mentioned the favourable macro conditions which fuel the region’s economic growth, as Romania’s GDP grew by 4.6 percent in 2016 and had the fastest growth in the EU in 2017. The high quality of grapes, the low cost of workforce, energy and packaging all allow a competitive cost base both on the internal and external markets.
Details of the offer
Purcari aims for its shares to be listed in the International Shares category, on the Regulated Spot Market managed by the Bucharest Stock Exchange.
The offer will include up to 9,800,000 shares, which represents up to 49 percent of the total number of the company’s shares. The offer is expected to be finalised in T1 2018, and its launch will depend on the market conditions and the fulfilment of other conditions, including obtaining all necessary approvals from oversight authorities and the registration of the company’s shares on the Romanian Central Depository, as well as the relevant corporate resolutions adopted by the selling shareholders.
The offer will be aimed at the retail sector and qualified investors in Romania, as well as international qualified investors with the exception of the United States.