Nova Consumer Group JSC (Nova Consumer) assigned SSI Securities JSC to distribute its initial public offering (IPO) shares. Registration and deposit payments for shares will be submitted from February 7 to 28.
According to the plan to offer the shares to the public, Nova Consumer will offer 10.900 million shares for the first time to the public at a minimum price of $1.88 per share. An investor's minimum and maximum subscriptions are 1,000 and 5.44 million shares, respectively.
If this offering is successful, Nova Consumer will use the earnings to strengthen the company's financial capacity to develop its food chain and add to its working capital flow.
Specifically, the company will use $18.7 million to buy back the contributed capital of Consumetion Investment Joint Companyin Sunrise Foods Co., Ltd. to develop its food chain. Less than $1.5 million will be used to contribute to Sunrise Foods. The rest of the raised capital will be used to supplement its working capital.
Anova Pharma – a member of Nova Consumer specialised in qualified veterinary medicine products that meet WHO-GMP standards
Since its establishment, Nova Consumer has continuously grown in capital capacity. From the initial $217,000, the firm's charter capital has increased to more than $43.4 million. Based on its solid development foundation, Nova Consumer continues to invest and strengthen its research capacity, automation in agricultural production, and innovative and advanced husbandry techniques. All those strategies offer consumers quality products and enhance the value of Vietnam's agricultural industry.
By the end of the first nine months of 2021, Nova Consumer's net revenue reached $115.8 million and profit after tax reached $14.8 million. In which the animal health segment accounted for the most significant proportion of 55.8 per cent, while the feed and farm segments saw a slight decrease in ratio, accounting for 26.7 per cent and 17 per cent, respectively.
Focusing on the farm and animal health segments will help increase operational efficiency and diversify Nova Consumer's revenue in the current context and, at the same time, reduce risks when the animal feed sector is subject to increasingly fierce competition.
In the long-term business strategy, Nova Consumer continues to expand into consumer goods and look for merger and acquisition opportunities, as well as deploying the 3F model (feed, farm, and food). The company has focused on developing consumer products in the food, beverage, and nutrition sectors, creating quality products and enhancing the value of community life.
In the past year alone, Nova Consumer has launched many products, such as PhinDeli, Rock Energy, and N'Joy, and quickly approached consumers through many distribution channels, focusing on e-commerce.
According to its development strategy, by 2025, Nova Consumer Group will develop its system to 150 consumer product distribution agents, 250,000 sales outlets, and 1,200 agricultural product distribution agents. Along with traditional sales models, the company also distributes via e-commerce channels and exports to more than 26 markets worldwide.
“By synthesising information about business results achieved in the last two years and business capacity, we realised that Nova Consumer is a reputable enterprise in the industry, operating effectively with modern and professionally invested facilities. Therefore, the group has had reliable sources of customers, bringing about continuous positive revenue and profit growth over the years,” stated a report by SSI Securities JSC.
With its plan to continue to improve the value chain, Nova Consumer will need to achieve higher profits to maintain its return on capital performance in the long term. According to experts, the above profit plan is reachable with the current operating and business capacity.