M&Z imports, markets, and distributes a vast array of renowned and established fast-moving consumer goods (“FMCG”). It is one of the top three local operators within the FMCG sector based on revenue, and its portfolio comprises around 100 brands spread across 7 product categories. The Company works with, represents, and has been granted the distribution rights of various international brands from numerous manufacturers, suppliers, and distributors. Its brand portfolio includes products sourced locally as well as from other countries/regions such as the UK, the EU and the Far East. In particular, M&Z has a very strong and longstanding business relationship with Unilever plc which is one of the largest consumer staple companies in the world.
The salient features of the offer are as follows:
Amount of Shares on Offer:
11,550,000 (representing 26.25% of the Company’s issued share capital).
Share Offer Price:
€0.72 per share.
Reasons for the Offer & Use of Proceeds:
M&Z believes that that the IPO will facilitate succession planning, strengthen relationships with suppliers and key business partners, encourage further consolidation in the local FMCG sector through M&A activities, encourage shareholder brand loyalty, and raise additional brand awareness among local consumers. Meanwhile, the net proceeds from the share offer, which are expected to be in the region of €8.12 million, will be for the benefit of the selling shareholders who aim to realise part of their investment in the Company. The share offer does not constitute an issuance of additional shares by M&Z and accordingly, no funds will be raised for use by the Company.
Plan of Distribution:
- Pre-Allocation Agreements: An amount of 4,620,000 shares has been reserved for subscriptions by Authorised Intermediaries through Pre-Allocation Agreements.
- Preferred Applicants: An amount of 907,000 shares has been reserved for subscriptions by Company employees, Directors, and connected persons of Directors.
- Intermediaries’ Offer: An amount of 6,023,000 shares is available for subscription during the offer period that closes on 18 February 2022.
M&Z intends to recommend a total dividend distribution of not less than 50% of distributable reserves in respect of the ordinary shares. Moreover, for the financial years ending 31 December 2022 and 31 December 2023, the Company intends to distribute dividends in respect of the ordinary shares amounting to not less than 75% and 65% respectively of distributable reserves generated in each financial year. This translates into a net dividend of €0.0288 per share for each of the 2022 and 2023 financial years which represents a yield of 4% on the share offer price of €0.72 per share. The first dividend payment following the completion of the IPO process is expected to take place in 2023 – i.e. after the approval of the financial statements for the period ending 31 December 2022.
The extent of any dividend distribution will depend upon, amongst other factors, the profits available for distribution for the year, the Directors’ view on the prevailing market outlook, any debt servicing and repayment requirements including financial covenants and other restrictive covenants, the Company’s cash flows, working capital requirements, investment opportunities, and capital expenditure requirements. Moreover, no dividends will be paid to the ordinary shareholders in any given year unless the dividend on the preference shares, and any cumulative preferred dividend, would have been first paid.
3 February 2022 to 18 February 2022.
Minimum Subscription Amount:
2,500 shares (equivalent to €1,800) and in multiples of 250 shares thereafter.
The shares of M&Z plc are expected to be admitted to the Official List of the Malta Stock Exchange on 11 March 2022 and trading is expected to commence on 14 March 2022.
Investors wishing to acquire the shares should read the Prospectus (in particular the ‘Risk Factors’) before making any investment decision in order to fully understand the potential risks and rewards associated with an investment in the shares. A copy of the Prospectus is available on Rizzo, Farrugia & Co. (Stockbrokers) Limited’s website. The investment in the shares may not be suitable for all investors and prospective participants are urged to consult their financial advisers as to the suitability or otherwise of acquiring the shares. The value of the investment and the income therefrom may go down as well as up and investors may lose some or all of the money invested.
This webpage has been prepared based on the Prospectus dated 25 January 2022 issued by M&Z plc and no representations or guarantees are made by Rizzo, Farrugia & Co. (Stockbrokers) Ltd with respect to the accuracy of the data. This webpage is for information purposes only. It is NOT intended to be and should NOT be construed as an offer or solicitation to acquire or dispose of any of the securities or issues mentioned herein. Rizzo, Farrugia & Co. (Stockbrokers) Ltd accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this webpage.
This advertisement has been issued by Rizzo, Farrugia & Co. (Stockbrokers) Limited, a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta, and having its registered address at Airways House, Fourth Floor, High Street, Sliema SLM 1551, Malta.