The company was told that for now it would be better off continuing its developmental strategy as a private entity.
“Throughout the process we have much appreciated the intensive interaction with all the reputable institutional investors. It became evident to me from their feedback during the process that the company’s current and medium-term growth trajectory will be best supported by staying private for the time being, preserving the group’s agility and entrepreneurial culture,” confirmed Huvepharma’s CEO, Kiril Domuschiev, yesterday.
The chief executive, however, did indicate the potential for the company to restart the listing process “at a later date in the future."
Last month, the company published the indicative price range for the IPO of between €20 and €25.75 (inclusive) per share, with it seeking a valuation of up to €4.5bn (US$5.32bn).
Huvepharma’s diversified product portfolio includes high margin areas in enzymes, coccidiostats, feed additives, veterinary products and vaccines.
It claims consistent sales growth over the past three years, with revenues of €588m and an EBITDA of €167m in 2020. The EBITDA margin was 28.4%, reported the Sofia based group.
In terms of this year’s financial results to date, Huvepharma said that, for the three months ended March 31, 2021, the group’s revenue increased by 11.2% compared to the same period the year prior, with all segments seeing positive growth.
“The sale of feed additive products was particularly boosted by the rollout of Monimax in Europe and Monovet in the US. The revenue generated from sales to the rest of the world increased by 30.9% as customers shifted supply from Asia to Huvepharma as a more reliable supplier during the pandemic.”
The company has three manufacturing facilities and two blending sites in Europe, plus another five mixing and blending sites in the US. And, following the 2019 completion of its new plant in Peshtera, Bulgaria, it has total fermentation capacity of over 10000 m3.