use of capital markets for growth, valuation and brand awareness
DESCRIPTION
Use of Capital Markets for Growth, Valuation and Brand Awareness. April 29, 2013. IPO SUMMIT 2013. Background – EFOODS Listing in 2011. Poor response received from public on past IPO’s (subscriptions averaging around 30% only) - PowerPoint PPT PresentationTRANSCRIPT
Use of Capital Markets for Growth, Valuation and Brand Awareness
April 29, 2013IPO SUMMIT 2013
Background – EFOODS Listing in 2011• Poor response received from public on past IPO’s
(subscriptions averaging around 30% only)
• Volatile law and order situation in Karachi during subscription days (July 5-7, 2011)
Offer Price Amount (Rs. M) Subscription
Engro Foods 25.0 675 94%
Growth
• Funds to invest in growth initiatives – current and future (IPO / Rights Issue etc.)
• Helps build confidence of investors / lenders
• Opportunities for mergers and acquisitions
• ESOS – retain and attract top talent to fuel growth
No. of Shareholders
Amount (Rs. M)
Foreign investors 5 579
Local institutions 3 621
General public 8,791 640
Underwriters 6 35
TOTAL 1,875
Funds raised by EFOODS
Growth
PRE IPO NOW
Milk Collection Centers 700 1,300
Production capacity – Dairy 446 million ltrs 601 million ltrs
Production capacity – Ice Cream 19 million ltrs 36 million ltrs
Nara Farm – animal housing capacity 2,500 animals 4,500 animals
Capital assets Rs. 8 Bn Rs. 12 Bn
G20 Award on inclusive business innovation
Pakistan ICT award, Asia Pacific ICT award, ICAP award for EMAN
10th largest customer of Tetral Pak International in terms of number of packs
Market Leader in UHT dairy segment
Investors’ funds utilized to fuel growth initiatives
IF YOU HAVE A GOOD BUSINESS MODELINVESTOR APPETITE IS PRESENT
Valuation
August-11
August-11
September-1
1
October-1
1
October-1
1
November-1
1
November-1
1
December-1
1
January-12
January-12
February-
12
February-
12
March-12
March-12
April-12
May-12
May-12
June-12
June-12July-
12
August-12
August-12
September-1
2
September-1
2
October-1
2
November-1
2
November-1
2
December-1
2
December-1
2
January-13
January-13
February-
13
March-13
March-13
April-13
-
100
200
300
400
500
600
KSE Engro Foods
165
584
2011 PROJ. 2011 ACTUAL 2012 PROJ. 2012 ACTUAL
Revenue (Rs. M) 30,280 30,369 40,779 40,868
Profit after tax (Rs. M) 727 891 1,679 2,595
EPS 0.97 1.22 2.0 3.40
EFOODS share price vs. KSE 100 index
EFOODS performance vs. projections at time of listing
IF YOU PERFORM WELL CONSISTENTLYMARKET REWARDS ACCORDINGLY
Brand AwarenessImproves external visibility
(shareholders, investors, community etc.)
Annual Reports
QUESTIONS?
Zaid Bin Zeeshan Muhammad MuddasirHead of Finance GM Finance & PlanningEngro Foods Limited Engro Foods [email protected] [email protected]