On 27 January 2023, The Convenience Shop (Holding) plc published a Prospectus in relation to the offer for sale of 7,700,000 shares at €0.97 each.
The Convenience Shop (Holding) plc is the holding company and finance vehicle for five grocery store operating companies as well as another company which is tasked with head office management and franchising operations. The Group operates 40 stores and acts as a franchisor to a further 43 grocery stores within the fast-moving consumer goods (‘FMCG’) industry, which operate under “The Convenience Shop” brand. The stores operated directly by the Group are leased and the Group does not own any property.
The salient features of the offer are as follows:
Amount of Shares on Offer:
7,700,000 (representing 25% of the Company’s issued share capital post-IPO), of which 1,000,000 ordinary shares will be issued by the company (new shares), while 6,700,000 ordinary shares will be offered for sale by the selling shareholders.
Share Offer Price:
The shares are being offered at €0.97 per share. However, employees and franchisees of the Group as at 27 January 2023 will have the opportunity to subscribe for up to 1,052,631 shares at a price of €0.945 per share. Additionally, specific discounts will be granted to applicants subscribing for sizeable amounts as follows:
Investment Amount of between €150,000 and €499,999: €0.957 per share
Investment Amount of between €500,000 and €1,000,000: €0.945 per share
Investment Amount of €1,000,000 or over: €0.915 per share
Reasons for the Offer & Use of Proceeds:
The net proceeds from the New Shares Offer, expected to amount to up to €970,000 will be used for the general corporate funding purposes of the Group.
The sale of shares by the selling shareholders represents a partial realisation of their investment in the Company.
The Board of Directors intends to distribute 55% of the recurring free cash flow on an annual basis, subject to statutory requirements and availability of profits. The net dividend yield is projected to increase from 5.0% in 2023 to 5.8% in 2025, based on the IPO price of €0.97 per share.
1 February 2023 to 10 March 2023 (or earlier as may be determined by the Company and the Selling Shareholders)
Minimum Subscription Amount:
2,000 shares (equivalent to €1,940) and in multiples of 100 shares thereafter.
The shares of The Convenience Shop (Holding) plc are expected to be admitted to the Official List of the Malta Stock Exchange on 3 April 2023 and trading is expected to commence on 4 April 2023.
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 2023 issued by The Convenience Shop (Holding) 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.