The Catalan Europastry, specialized in frozen bakeries, will debut next Thursday on the stock market with a price between 15.85 and 18.75 euros per share and with the aim of raising 210 million euros gross.
This is the second exit to the continuous market which takes place this yearafter that of Puig in May and its subsequent entry into the Ibex 35 in July.
According to the prospectus that the company sent to the Commission Nationale du Marché des Valeurs (CNMV), the maximum amount of the offer, including the over-allotment, is 555 million eurosand plans to use funds from the transaction to “take advantage of inorganic growth opportunities” and reduce short-term debt.
The operation includes a primary offering by the company of 11.2 million to 13.25 million new sharesand a secondary component composed mainly of all the shares held by Exponent, a fund controlled by MCH Private Equity and which controls 20.7% of the company’s capital before the operation.
Likewise, the company controlled by Wales family and which is a reference shareholder of Europastry, Galles Office, and the company controlled by the CEO, Jordi Morral, Indinura, plan to sell a minority stake in the operation.
Regardless, the Galles family, who own the company, will control more than 60% of Europastry after the IPO, while CriteriaCaixa will collect “no less than 5%”.
According to the brochure, Europastry must use approximately 109.1 million to reduce its current debtso that the ratio between net financial debt and Ebitda is less than 2.5x.
The company may use certain 89.6 million for purchasesafter subtracting debt repayment and the costs of the IPO itself.
On the other hand, “intends” to pay its first dividend after the IPO in 2025 and the aim is to distribute up to 30% 2024 results.
The company’s intention is to distribute the 30% of annual profits to dividends in subsequent years, although she said this will depend on conditions that “may be beyond the control” of the company.
Among the main risks that the company includes in the prospectus is the number “important” competitors and energy prices.
The company explained that the The frozen bakery industry is ‘fragmented’ and warned of the impact that a downward price trend would have on its margins and profits, while believing that failure to comply would have a negative impact on its sales.
Likewise, he warned that “operation depends on various energy sources” -listed electricity, natural gas and propane gas- and said energy spending accounted for 9.8% of its operating expenses in the first half, which in 2023 was 14.2% and in 2022 by 17.7%.
Europastry also highlighted that its operations are “highly focused” on the Spanish market, which in the first half of 2024 has contributed to the 42.7% of its net turnover.
